With more members and increasing deposits, Boeing Employees Credit Union is growing in Tukwila, where it bought an office building last week next door to its headquarters.
BECU paid RREEF America REIT II Corp. $15.2 million for the 25-year-old building at 12720 Gateway Drive, according to public records. The building, which measures 62,700 square feet, is fully occupied by a branch of the private school ITT Technical Institute and other tenants, according to BECU Vice President Gregg Kats, who said the tenants have leases with different options.
The acquisition is not an expansion of the BECU headquarters, though the credit union will eventually take over the building. Kats said the credit union bought the new space to "support our long-term facilities growth strategy." BECU's headquarters next door measures 150,000 square feet.
Bill Frame and Richard Davidson, brokers with commercial real estate company Kidder Mathews, negotiated the acquisition for BECU.
Reflecting a national trend, BECU increased the number of members to 884,000 in September, up nearly 6 percent from September 2013, according to BECU spokesman Todd Pietzsch. During the same period, deposits increased nearly 7 percent to $11.2 billion.
Credit unions began seeing membership increases during the Great Recession, when public frustration with big banks grew. At the end of last year, the National Association of Federal Credit Unions (NAFCU) published a study projecting continued growth. NAFCU Chief Economist David Carrier said a variety of evidence, mostly anecdotal, showed big-bank customers transferred accounts to credit unions because they were discouraged by the policies, fees and lack of accessibility at large banks. Many new credit union members are younger, Carrier said.
For the full story, go to Puget Sound Business Journal.
© 2014 American City Business Journals. All rights reserved.