Seattle Mid-Rise Lands $82M Refi
- Feb 14, 2018
Urban Visions has secured an $82 million loan to refinance 200 Occidental, a 182,346-square-foot, Class A office building in the Pioneer Square submarket of Seattle, Wash. HFF arranged a 15-year fixed-rate loan through Allianz Real Estate of America Inc., on behalf of the borrower. The new loan replaces the financing that HFF assisted the borrower with in 2016 at completion of construction.
“Working on the 200 Occidental transaction again was a privilege and we were thrilled to introduce Urban Visions to a new capital relationship,” Bruce Ganong, HFF’s senior managing director, said in a prepared release. “The closing of this high-profile financing was also timely considering the recent opening of HFF’s Seattle office.”
The eight-story creative office building consists of 166,314 square feet of office space, 16,032 square feet of ground floor retail and 68 below-grade parking spaces. The LEED Platinum building features 26,000-square-foot floorplates, operable full-height windows, open floor plans, exposed concrete ceilings, bike stalls, locker rooms with showers and an exterior deck on the eighth floor with views of Elliott Bay. The property is currently occupied by the Weyerhaeuser Company, which utilizes the entire office portion as their corporate headquarters.
Located in the heart of Pioneer Square, 200 Occidental is close by the Pioneer Square and King Street train stations and offers convenient access to Interstates 5 and 90 and State Route 99, the primary north-south route through Seattle. The building is also close by Occidental Square, CenturyLink Field and Safeco Field.
Joining Ganong on the HFF debt placement team were Senior Managing Director Gerry Rohm and Director Brandon Roth.
Seattle Office Market
Urban Visions is no stranger to its home-city of Seattle. Its portfolio consists of 888 2nd Avenue, “S”; 1516 2nd Avenue; Millennium Tower; and IDX Tower. The company has nearly three million square feet of office and residential projects in Seattle.
The office market in Seattle has been strong of late. JLL’s 4Q 2017 Seattle-Bellevue Market Report noted the area has become a critical and strategic location for growing tech companies, reflected in part by a historically low unemployment rate of 3.8 percent. Additionally, the Puget Sound region experienced a large volume of leasing activity across the market and strong tenant demand and continues to push vacancy below 10 percent. Rental rates increased 2.5 percent year-over-year as market fundamentals remain strong.
Earlier this month, HFF represented both parties in the $43 million sale of the Vance and Sterling buildings in downtown Seattle. Jonathan Rose Cos., was the seller, while Brickman and GreenOak Real Estate was the buyer. HFF also secured $35.5 million in acquisition financing for the property.