Seattle Office Tower Trades for $268M

Japanese investment firm Takenaka Corp. is the new owner of the 11-story Tilt49 office building in the Denny Triangle, a key location for the city's office, tech and life sciences industries.
Tilt49, Seattle
Tilt49, Seattle

NKF Capital Markets has completed the $268.5 million sale of Tilt49, an 11-story Class A office building in Seattle, on behalf of the seller, a joint venture between Principal Financial Group and developer Touchstone. Takenaka Corp. out of Tokyo, Japan was the buyer of the newly constructed 290,573-square-foot office asset.

The property is located at 1812 Boren Ave., in the heart of Denny Triangle, one of the most important office submarkets in Seattle. The area is also a key location for the tech and life sciences industries. Over the last three years, the average asking lease rate for Class A office space in the Denny Triangle has increased by 51 percent.

The building’s office space has been entirely triple-net leased through 2033 to a significant online retailer and technology company. The development also includes 1,646 square feet of retail, leased to Mighty-O Donuts. 

Record-setting pricing

The NKF Capital Markets team representing the seller included President, West Coast Kevin Shannon, Executive Managing Director Ken White, Senior Managing Director Rob Hannan and Managing Director Michael Moll.

“Our NKF Capital Markets team strategically sourced the buyer via an ad hoc Asia/Pacific roadshow to four countries,” said Shannon, in a prepared statement. “Senior Managing Director Alex Foshay along with Rob Hannan led the effort. As a result, we identified a strong buyer and achieved record-setting pricing for a Seattle office property. Takenaka is a first time buyer in the Seattle market and plans a multi-generational holding period for this trophy asset.”

Tilt49’s price per square foot was $924, approximately $40 higher than the price the adjacent Midtown21 commanded. Union Investment, a German investment firm, acquired the Seattle high-rise in June from developers MetLife Real Estate and Trammell Crow Co. for a total of $330 million.

Image courtesy of NFK