The 550k SF SeaTac Office Center is 62% leased, down from 82% before the recession. Nonetheless, Urban Renaissance Group just spent $47.1M on the property and plans to put another $10M into revamping the '70s-vintage asset. We caught up with Urban Renaissance CEO Pat Callahan, who tells us why it was the perfect time to make the buy.

1. Rising Rents, Lower Vacancies Downtown

As core Downtown markets experience increased rental rates and decreased vacancies, Pat says he expects the market around the airport to experience significant demand growth in the not-so-distant future, offering high-quality space at better prices. The three-building SeaTac Office Center at 18000 Pacific Hwy S includes two 12-story North and South Towers at 210k SF and 225k SF each, and a four-story, 115k SF low-rise building.

2. The Growth of the SeaTac Airport

Pat points out the building is the only institutional-quality high-rise campus in the south-end submarket. Just as importantly, it has immediate access to Seattle-Tacoma International Airport, which is projected to grow from 81 gates to 116 gates designed to handle the projected growth in passenger traffic from 37M annually to more than 66M by 2024.

3. Strong Transit Connections

The property is also well-served by public transit, with a light rail stop and RapidRide bus stop within one block, Pat notes. Plans for the property's renovation include upgrading building systems to improve efficiencies, as well as exterior improvements to landscaping and lighting. URG acquired the property with partner Iron Point Partners.