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32125 32nd Avenue South, Federal Way, WA


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32125 32nd Avenue South, Federal Way, WA


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$14M

LIST PRICE

$139.59

LIST PRICE PSF

58%

OCCUPANCY

13.37%

YR 3 IMPLIED CAP RATE

Presenting the opportunity to acquire the I-5 Technology Center, a Class A, two-story office building located directly off I-5 in the East Campus area of Federal Way.

The building was constructed in 2000 to the highest standards, exceeding most conventional Class A office buildings in the Seattle area. The building has been extensively renovated and features a grand lobby with a free-floating steel staircase beneath a large multi-paneled skylight. The building has upgraded electrical and data capabilities andan above-market parking ratio. Totaling 100,295 square feet, the I-5 Technology Center is located directly adjacent to a major intersection off of Interstate 5 and within one mile of The Federal Way Commons, one of the largest lifestyle centers in the greater Puget Sound region.

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Key Features



Avanti market in common cafe
24/7 fitness center with lockers and showers
Abundant free parking (5:1,000 SF)
High bay garage/storage access with available space
Amenity-rich location
Quick, convenient freeway access to I-5 and SR 18

INSTITUTIONAL QUALITY ASSET

I-5 Tech is a top of it’s class, concrete and steel construction that exemplifies excellence in design, featuring impressive street appeal, prominent signage opportunities, and elegant common areas. The property’s Class-A image appeals to a diverse range of tenants seeking a high-quality professional environment.

PROFESSIONAL SERVICE FOCUSED SUBMARKET

In a market environment where tech-reliant submarkets face heightened scrutiny, the South Sound region is poised for increased investor interest. Traditionally trading at a discount relative to Bellevue and Seattle, the South Sound market is comprised of traditional tenant uses (financial services, law firms, etc), which is increasingly favored by investors. Strong absorption trends and the resilience of this submarket further solidify its position as an attractive and reliable investment option.

ABOVE MARKET RETURNS WITH UPSIDE POTENTIAL

At the offering price of $14,000,000, the implied CAP rates reach 7.26% in Year One and 11.55% in Year Two. Early feedback indicates that conservative 50% debt financing at approximately 7.25% is available from both lenders and conduit sources. Furthermore, the current vacancy provides for a significant value add within the first three years of ownership, with a Year Three implied CAP rate of 13.67%.

QUALITY TENANCY OPPORTUNITY

I-5 Tech is poised to attract top tier quality tenants with significant square footage requirements. This bodes well for the building as the submarket sees a tremendous amount of activity in the larger square footage ranges. Federal way is the strongest performing South Puget Sound Submarket. Regional and national tenants consider Federal Way a perfect location for a company headquarters or satellite office.


EFFORTLESS CONNECTIVITY

Quick, convenient freeway access to I-5 and SR 18

23 MI

TO Downtown Seattle

26 MI

TO Bellevue

12 MI

TO Tacoma

12 MI

TO Sea-Tac Int'l Airport

Demographics