Bellevue Medical Park
- Sale Amount: $6,300,000
- Sale Date: December 2013
- Building Square Feet: 12,831 SF
- Land Area: 84,071 SF
- Zoning: BR-MO
- Location: Bellevue, WA
1600 116th Ave NE
Bellevue, WA 98005
AGM was approached to help a group of doctors who owned Bellevue Medical Park, an aging medical office property. Each doctor was at a different point in his career – with a different agenda – that made managing the asset a challenge.
The doctors were responsible for maintaining their own office suites (similarly to condominiums), and some units had been remodeled and were well-maintained – adding to the overall property value – while other units had largely been neglected over the course of thirty years. The challenge of addressing the disparity in individual suite values was further exacerbated by some doctors wanting to cash out of the ownership LLC, some wanting to remain in their suites in-practice, and most not wanting to increase their tax burden.
The AGM Solution:
Undertaking the roles of general manager, property manager, and listing broker, AGM provided strategic leadership, management, and marketing – implementing $150,000 in capital improvements and negotiating new lease agreements for every unit to bring each to market rent – resulting in raising the property to fair market value. AGM then listed the property for sale, and owners were given the option to sell or hold their shares. AGM brought in new investors to buy out those who elected to sell, while the partners who chose to stay had their shares re-invested in a like-kind property through a 1031 Exchange.
AGM’s strategic plan for the disposition of the Park provided an efficient, trouble-free way to deliver strong returns to all investors. The owners within Bellevue Medical Park LLC achieved their goals: those who wanted out received their money soon after closing, those who wanted to maximize the value of their investment participated in the 1031 Exchange (which also provided for deferred tax payments), and all were happy with the outcome.