Schnitzer West Raises Funds Through Office Sale for Speculative Industrial, Office Development
By Alex Girda, Associate Editor
Schnitzer West has completed the sale of a number of office buildings in Bothell, The Puget Sound Business Journal recently wrote. They marked only the latest activity by the company in the South Puget Sound submarket. It is also reportedly gearing up to develop industrial properties in the area and is searching for good spots for office development.
Schnitzer West sold seven office buildings to Eastside investor Stan Rosen as part of a portfolio traded for $25.8 million. The assets are located in Bothell, in the North Creek office campus. The deal was made for a 126,000-square-foot campus and Tech Center II, an office building totaling 31,000 square feet. The deals are reportedly fundraising for Schnitzer’s two major office developments in the greater Seattle area: Madison Centre and a Bellevue project.
Where industrial real estate is concerned, the company looks intent on developing property in South Puget Sound, following a pattern it has pursued with Valley Avenue Business Park in Puyallup. After Schnitzer West completed development on that 443,000-square-foot business park and had leasing in place for the facility, it sold it for $41.6 million.
With a proven business model and the industrial market improving in Pierce County, the company stands a chance of achieving a profitable investment on its development slate. Speculative development is popular in the South Puget Sound, according to the PSBJ, with as much as 2 million square feet of industrial space set to start construction in 2013.
Image courtesy of valleyavenue.com