Hines Global Grabs Bellevue Office Portfolio

Hines Global REIT is continuing its expansion in the greater Seattle area's prominent real estate market with a second acquisition.
SUMMIT

Hines Global REIT, Inc. has acquired The Summit, a portfolio of two Class A office towers (Summit I and Summit II) in Bellevue, Wash., from Ivanhoe Cambridge.

The price of the transaction was not disclosed.

“We have admired the Summit properties ever since the first tower was developed over 10 years ago,” Ty Bennion, Hines’ senior managing director, told Commercial Property Executive. “The combination of very efficient floorplates, which are paired with an expansive, modern lobby that give tenant employees a generous area to gather while overlooking one of the finest landscaped outdoor plazas in the City of Bellevue, make it one of the most attractive projects in the market.”

Combined, Summit I and Summit II totals 524,130 square feet and also includes a 43,413-square-foot development site (Summit III) that is fully entitled for 330,409 square feet of additional office space. Hines will be marketing the Summit III development opportunity for pre-lease.

“Assets of this quality and scale, in a market as strong as Downtown Bellevue don’t come available very often,” Bennion said. “Ivanhoe Cambridge has owned these properties continuously since they began development over a decade-and-a-half ago. We see this as a once-in-a-generation opportunity to own two core office towers along with a development opportunity on one of Bellevue’s most desirable intersections.”

This was Hines’ second major office transaction in Bellevue in the past few weeks, following its $205.1 million acquisition of the neighboring Civica Office Commons in late February.

The latest CBRE office market report 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.

According to Bennion, the Summit building location in the heart of Downtown Bellevue enjoys fantastic access on the intersection of 108th Avenue, Bellevue’s pre-imminent business address, and NE 4th Street, with the best access to I-405, along with being only one block from Bellevue’s transit center and the soon-to-be-construction light rail station.

In addition, the buildings feature easy access to all of the dining, shopping and other amenities that downtown Bellevue has to offer.

The property is currently 94.7 percent leased to 11 tenants, including New York Life Insurance, Perkins Coie, Puget Sound Energy, and Sterling Savings Bank.

Hines will manage The Summit on behalf of Hines Global REIT, Inc.