Hines Acquires Large Office Asset in High-Performing Bellevue
- Feb 24, 2015
Mega-developer Hines has acquired Civica Office Commons in Bellevue in a deal worth approximately $205 million. The Bellevue office market has consistently over-performed in the past few years, with top assets currently sought after at cap rates lower than 5 percent. With completions also set to go up in 2015 and absorption rates climbing as well, the area’s office market is ripe for investment.
The latest addition to Hines’ Pacific Northwest office portfolio totals 323, 562 square feet of space. Civica Office Commons consists of two office buildings standing six and eight stories, respectively, and connected by a common atrium. The property was developed back in 2001 and offers tenants a considerable amenity package, including a concierge, Seastar restaurant, Starbucks, a Wells Fargo bank branch, hotel-style valet parking, a fitness center with lockers and towel service, as well as state-of-the-art conference facilities.
A testament to the market’s current highs, only around 10 percent of the property is currently vacant. The asset features a number of high-profile tenants on its roster, among them Cornerstone Advisors, MetLife, Microsoft, Morgan Stanley, Waggener Edstrom as well as Wells Fargo Bank.
According to Hines Senior Managing Director Ty Bennion, Bellevue continues to be the region’s strongest submarket. CBRE research shows that at the end of fourth quarter 2014, the Bellevue CBD was the best-performing office market in the greater Seattle area, based on total gross asking lease rates for Class A space. Bellevue’s CBD also ranks high in occupancy and trails only the booming South Lake Union area for office space to be built in the coming years.