750,000 SF Boeing Office Portfolio Acquisition for IntraCorp
IntraCorp · Kent, WA (South King County)
Represented by Michael Hemphill, The Andover Company
- PortfolioSeven office buildings, 750,000 SF
- SellerThe Boeing Company
- Price$40,500,000
- CompetitionEight other buyers
Challenge
IntraCorp, a large mixed-use developer with projects along the West Coast, wanted to enter the South King County office market, which had 9% vacancy across 8 million SF.
The Boeing Company decided to sell seven office buildings totaling 750,000 SF. The price looked attractive, but leasing that much office space in Kent looked risky. The challenge was to buy at a price that allowed a profitable return.
Strategy
Andover brought deep knowledge of the South King County office market and a strong belief that the project could be renovated into Class A office space, an oasis in an industrial area that would attract large corporate tenants.
Andover and IntraCorp built a purchase price and action plan that convinced Boeing that IntraCorp was the right buyer, even with eight other buyers competing for the property.
Results
IntraCorp bought the portfolio for $40,500,000.
The project leased up faster than expected at higher rents than anticipated, with creditworthy tenants including Alaska Airlines, United Airlines, and Messier-Dowty. Andover expected IntraCorp's return to significantly surpass its original projection.
Related services
More on the Kent industrial and office market.
Adapted from The Andover Company's published case study. Represented by Michael Hemphill of The Andover Company. Ben Hemphill now works alongside Mike Hemphill.
