Skanska Sells Office Building in Warsaw for $106M

A German institutional investor was the purchaser of the 204,500-square-foot Generation Park Z tower.
Generation Park Z. Image courtesy of Skanska

Skanska has sold the Generation Park Z office building in Warsaw to Deka Immobilien for €98 million, or about $105.6 million. The transaction will be recorded by Skanska Commercial Development Europe in the first quarter 2020, and the Polish office property transfer is scheduled for the second quarter.

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The approximately 19,000-square-meter (204,500-square-foot) Generation Park Z is part of a three-building office complex in the fast-growing Warsaw City Center West submarket. The site, at 28 Towarowa St., is about two blocks from the Hilton Warsaw Hotel and Convention Centre.

The building is fully leased to Vistra, a financial and corporate services company, and business consultancy Crido, among other tenants. Completed in the third quarter of 2019, the tower has achieved LEED Platinum pre-certification and is applying for WELL Core & Shell certification.

Portland to Poland 

A couple of recent deals illustrate Deka’s wide reach and eclectic investments. In August, Deka acquired 6Y, an 11-story, Class A creative office building in Portland. The 116,244-square-foot property, at 811 SW Sixth Ave., was Deka’s first purchase in that city. In November, a Deka-owned hotel in Dublin was turned over to new managers. NH Hotel Group planned to rebrand the 187-key property into the first Anantara Hotels, Resorts & Spas location in Europe.

The Warsaw office market benefits from the fast-growing Polish economy, whose GDP is projected to rise by 3.1 percent in 2020, according to a January report from Savills. Office inventory in Warsaw totals 60.3 million square feet, with a further 8.5 million square feet under construction. The overall vacancy is 7.8 percent, which is down 90 basis points year-over-year. The City Center West submarket has an average vacancy of 4.6 percent on an inventory of 7.6 million square feet, again according to Savills.