Seattle Office Building Commands $330M
- Jun 19, 2017
Union Investment has acquired Midtown21, a 21-story, Class A office building in Seattle, from developers MetLife Real Estate and Trammell Crow Co., for $330 million.
The acquisition will be transferred to the holdings of open-ended real estate fund Unilmmo: Europa, which focuses on investments in Europe but occasionally buys properties overseas.
“Midtown21 is one of the most prestigious newly constructed office buildings in the Denny Triangle submarket and makes an ideal addition to our U.S. portfolio,” Matthew Scholl, Union Investment Real Estate GmbH’s head of investment management Americas, said in a prepared release. “In Midtown 21’s lead tenant, we have a truly global company with very strong ties to the city of Seattle who has not only played a significant role in boosting the economic growth of the country, but of the entire region.”
The fund also owns Seattle-based properties, Amazon Phase VI office building and Hilton Garden Inn Hotel.
Amazon Anchors Midtown21
Located at 1007 Stewart St., in the high-growth Denny Triangle between the central business district and the South Lake Union submarket, the property is currently 98.4 percent occupied. Amazon currently rents 381,491 square feet of the building, all but a 5,800-square-foot, ground-floor retail space.
“Seattle’s Denny Triangle is already a first-class submarket,” Willis Kim, Union Investment Real Estate GmbH’s head of U.S. West Coast and Canada, said. “Going forward, the quality of the location will continue to improve, for example through the expansion of the Washington State Convention Center and significant investment in local infrastructure with the extension of the urban rail system.”
Originally developed as a multi-tenant building, the LEED Gold certified Midtown21 offers a large open area which can be utilized for meetings; a conference center; and 306 parking spaces in a six-story underground car park. It also offers bicycle storage and showers for employees.
According to Colliers International’s Q1 Puget Sound Office Market Report, the Puget Sound market enjoyed the 28th-straight quarter of positive absorption and forecasted that the Seattle region would remain a resilient office market as it benefits from the talent and success of companies that call the Puget Sound “home.”