The Spring Report – 2018 Year End
While 2015 and 2016 saw the largest number of transactions and sales volume in the five years AGM has been producing the Spring Report, 2018 continued the positive trend in both increases per square foot of buildings and land. The investment focus was again led by owner/users with the balance of interest spread between land and investment sales.
Owner / Users
Owner/user transactions continue to be the largest amount of sales activity, staying in line with our previous quarterly reports which accounted for approximately 50% of the sale transactions and sales volume within the district. The average building price per square foot for these transactions increased a small percentage to $427.27, continuing the upward trend and reflecting the strength of these deals.
Six of the seventeen transactions for the year were considered land sales, accounting for 35% of the sales volume.
While the land value on average increased 17% from a $104 to $122 per square foot, the higher density BR-CR-zoned properties – which are more indicative of the marketplace and are our focus of interest – come in at an average $151.28 PSF, consistent with our predictions from our previous report.
The values that skew the overall average (and were omitted from the $151.28 PSF calculation) can be separated into two distinct categories: the properties along the southside of Bel-Red whose zoning has a lower FAR, and the properties with less desirable zoning, topography, size/shape, or location that make them more challenging to develop.
For Spring District zoning information, please visit Bellevue Municipal Codes.
AGM’s presence and activity within the Spring District was as strong as ever. AGM accounted for roughly 30% of the sales volume for the year, totaling $38,750,000. The third quarter of 2018 was our most active period, where AGM completed 64% of the volume. We also were responsible for the largest transaction within the district, selling the BMW of Bellevue property for $25 million.
As we approach $200 million in sales in the Spring District, AGM remains committed to cultivating new ideas and investment opportunities. Important to note, of the seventeen sales within the SD, only eleven were listed for sale, leaving the balance of the sales off-market and only available to those buyers who are active within the marketplace.
If you would like to learn more about the Spring District including the significant “off-market” activity, or if you are interested in learning about other AGM transactions, please feel free to give us a call to schedule a meeting.