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ISSAQUAH, WA-Swedish Medical Center’s lease of a 55,223-sf publicly owned office building here is about more than its future as the state’s first stand-alone emergency room. Rod Rennie, a leasing manager with the state, tells GlobeSt.com the building is owned by the Common School Trust, which funds construction of K-12 public schools.Moreover, Rennie says there was some concern that the building was going to be a drag on the trust, as the lease for the building’s previous anchor tenant, Amgen, was expiring and Amgen had no plans to renew. As well, the other tenant in the building, USA Today, volunteered to leave a year early to help facilitate the deal with Swedish. “It’s a phenomenal deal for us,” says Rennie. “We were extremely lucky.”The 20-year lease commitment includes an option that gives Swedish the right to cancel the lease after 10 years. The first 10 years of the lease will generate $9 million in revenue for the state, says Rennie. If Swedish stays on for the second 10 years, it would pay slightly more than it did for the first 10 years.The building, which is visible from Interstate 90, is known as I-90 Lake Place I, Building B. It is located at 2005 N.W. Sammamish Rd. across from the entrance to Lake Sammamish State Park. As a rental concession, the state is giving Swedish a tenant improvement allowance of $828,000, or about $15 per sf, says Rennie. Swedish will be investing an additional $18 to $20 million to transform the building into a state-of-the-art medical facility. Swedish Medical’s renovation work will include significantly reconfiguring interior walls, upgrading HVAC equipment, adding systems for delivery of medical gases, installing a backup generator and constructing an entrance for emergency vehicles. In addition to the ER, the Swedish complex will include a medical-imaging center, a sleep lab and, on the second floor, a community health education classroom and offices for primary care and specialty physicians.

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