Four-building sale shows surge in commercial property prices
A publicly traded real estate investment trust based in Los Angeles closed this week on its $380 million acquisition of four Seattle-area office buildings from San Francisco’s Spear Street Capital.
Seattle Times business reporter
The sale of four Seattle-area office buildings for big profits this week was the latest sign of robust activity in the region’s commercial-property market.
Hudson Pacific Properties, a publicly traded real estate investment trust based in Los Angeles, closed this week on its $380 million purchase of four office buildings from San Francisco-based Spear Street Capital.
The portfolio totals 836,419 square feet of office space, almost the equivalent of downtown Seattle’s Russell Investments Center:
• A two-building Pioneer Square complex at First Avenue South and King Street adjacent to the Alaskan Way Viaduct sold for $225 million, or about $459 a square foot. The complex, originally developed by Starbucks Corp. and now 90 percent leased, was acquired by Spear Street in 2011 for $125 million.
• Metropolitan Park North in South Lake Union sold for $106.5 million. Spear Street bought the building for $61 million in a March 2012 foreclosure sale, records show. Starting in November, Amazon.com will begin a 10-year lease and occupy three-quarters of the fully leased building, Hudson Pacific said.
• Northview Center in Lynnwood sold for $48.5 million. Spear Street paid $39.4 million for the 10-acre office park in 2006. The property is almost fully leased to tenants such as Automatic Data Processing Inc. and the Federal Emergency Management Agency, Hudson Pacific said.
The Seattle portfolio deal “provides us immediate critical mass in the region, with a beachhead in some of the most vibrant submarkets in downtown Seattle,” Hudson Pacific said in a statement last month.
Seattle’s office sales activity saw a burst of deals in the second quarter, with six major sales totaling $882.4 million, a 340 percent increased over the previous quarter, according to commercial real-estate brokerage Jones Lang LaSalle.
That tally included Clarion Partners’ sale in April of Elliott West for $142.5 million, or $478 per square foot, the brokerage said.
Sanjay Bhatt: 206-464-3103 or firstname.lastname@example.org On Twitter @sbhatt