A prominent commercial property in Kennewick’s Southridge area has come under new ownership. 

Cynergy Center, a more than 20,000-square-foot office building at the corner of 27th Avenue and Union Street, has sold for $5.1 million, according to a release. The new owner, listed as 4309 West 27th Place LLC, paid fully in cash. 

“This transaction generated multiple offers within days of hitting the market, underscoring continued demand for well-located medical office investments in the Tri-Cities,” said Ruthanne Loar of brokerage Marcus and Millichap. “It was especially notable that the buyer completed a 1031 exchange out of Texas and back into Washington, reflecting continued confidence in the long-term strength of the Kennewick market.” 

A 1031 exchange allows real estate investors to sell a property and use the proceeds to buy a new business or property, delaying capital gains taxes. 

Built in 2006, the Kennewick building, known for its curved glass front, is fully leased to a mixture of tenants, with more than 60% being medical offices. It’s a far cry from eight years ago, when it had been empty for months when two doctors and a Tri-City investor sought to revitalize it. 

Among the current tenants are brunch spot and patisserie Cafe Magnolia, creative firm Sara Nelson Design and healthcare-related firms specializing in women’s health, sports medicine, dermatology and esthetics.  

Another recent tenant was Equilus Capital Partners, a Wenatchee-based private equity firm that was placed in receivership after state regulators alleged its officers misappropriated investments through actions including making Ponzi-like payments and its founder using nearly $780,000 to pay for items such as a boat slip and down payments on a vehicle and private home.