Share

RSIR Top Commercial Sale In 2016 Fetches $24 Million

By Realogics |

Veteran broker, Becky Lee of Realogics Sotheby’s International Realty (RSIR) was recently engaged in the private sale of commercial property at a key location for accommodations adjacent to Seattle-Tacoma International Airport.  Lee brokered the purchase of a 94-unit hotel and adjoining commercial parking facility on busy International Boulevard, the commercial strip adjacent to Sea-Tac International. The subject hotel is just two blocks from the airport entrance. This highly congested area bustles with daily airport traffic, and business continues to intensify along with the region’s booming economic growth.

becky-lee-headshot
Becky Lee | RSIR Real Estate Broker | English, Chinese, Japanese, Mandarin Chinese, Taiwanese

The sale was closed on December 15, 2016 for $24 million. The subject improvements included 6.7 commercially-zoned acres, four buildings, and the park-and-fly lot. The commercial lodging and parking operations relating to these facilities were also conveyed in the broader transaction.

A Seattle Times article last summer co-authored by former U.S. Ambassador and Washington Governor Gary Locke described Sea-Tac International Airport’s immediate growth prospects and the need for the airport’s expansion. While the airport already generates 170,000 jobs and more than $16 billion annually, “that impact should grow even more as passenger volumes are projected to climb from today’s 42 million to 66 million by 2034. With total flights into and out of the airport expected to increase to 540,000 annually from today’s 350,000, Sea-Tac will need approximately 35 additional gates, a 40 percent increase from the 88 at the airport today.”[1]

TOP COMMERCIAL SALE IN 2016 SeatacTOP COMMERCIAL SALE IN 2016 SeatacTOP COMMERCIAL SALE IN 2016 Seatac

Hoteliers are anticipating the need for more local accommodations. Earlier in the year, the City of SeaTac held a public hearing about a proposed new 165-room, five-story hotel to be located on Angle Lake. The developer, Western International, will build the hotel—to be branded as a Residence Inn by Marriott—on approximately 114,820 square feet on Angle Lake, with 126 adjoining parking stalls.[2]

Because the ballooning growth is hemmed in by commercial use constraints parallel with International Boulevard, local area hotel accommodations and long-term parking will need to expand upward to meet the escalating demand. Existing hotels, such as the above property brokered by RSIR’s Becky Lee, can expect to see sustained high traffic and profitability during this period.

[1] Gary Locke, Lee Newgent, and Deanna Oppenheimer, “How Sea-Tac Airport can keep up with growth,” The Seattle Times, July 23, 2016 (http://www.seattletimes.com/opinion/how-sea-tac-airport-can-keep-up-with-growth/).

[2] Scott Schaefer, “City of SeaTac holding Public Hearing on proposed new Angle Lake Hotel Jan. 7,” SeaTac Blog, December 31, 2015 (http://seatacblog.com/2015/12/31/city-of-seatac-holding-public-hearing-on-proposed-new-angle-lake-hotel-jan-7/).