Metlife, Clarion Acquire Iconic 1.1M-SF Office Tower
SEATTLE-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Clarion Partners has entered into a joint venture with MetLife to acquire 1201 Third Ave. here in Seattle. GlobeSt.com could not obtain further financing terms of the deal at this time, but as GlobeSt.com posted in September when the 55-story skyscraper hit the market, it was likely to fetch close to $500 million.
And, according to an unidentified source not involved in the deal, the purchase price is north of that number at $492 per square foot or $548.8 million. The Third Avenue building is owned by Wright Runstad, a Seattle developer, Boston-based Beacon Capital Partners and San Francisco-based Shorenstein Properties.
The class-A office property in Seattle’s central business district is the second tallest and one of the most recognizable office towers in the city, according to a prepared statement. The 55-story building features 1.1 million square feet of rentable office space and 33,000 square feet of retail as well as six below-ground levels of parking.
“1201 Third Avenue is a Seattle treasure, and we’re proud to ensure its continued success through its new ownership team,” says Greg Johnson, president of Wright Runstad & Co. “The new ownership team shares our values and vision for a true trophy building that anchors
Seattle’s downtown skyline.”
Stephen P. Latimer, managing director and head of Clarion Partners’ Seattle office, says in a prepared statement that “The office market in Seattle’s central business district has demonstrated strong growth over the last several years, with demand for space focused on higher quality properties. We expect these trends to continue, and are pleased to have the opportunity to acquire what is clearly one of the city’s premier buildings on behalf of our client.”
1201 Third Avenue is 80% occupied and holds a LEED Platinum designation. It was also awarded the ULI Award for Excellence.
Wright Runstad & Co. has been an owner of the property since its development together with a succession of partners culminating with an affiliate of Beacon Capital Partners LLC and a limited partnership interest held by San Francisco-based Shorenstein Properties. Wright
Runstad & Co., whose corporate offices are in the building, will continue to manage the property on behalf of the new owner after the sale. Eastdil Secured represented the selling partnership.
According to a recent office report from Jones Lang LaSalle, "top tier, downtown class A office buildings continue to outperform, although their success comes at the expense of commodity class A, class B and suburban properties."
Big deals are happening in Seattle as of late. As GlobeSt.com just previously reported, the Joshua Green Corp., a Seattle-based investment firm, recently made an investment in locally based real estate operating company Urban Renaissance Group. That transaction included JGC’s existing $150-million portfolio, which now is part of URG, merging JGC’s real estate assets into URG’s operating platform. JGC also committed up to $50 million in additional investment for URG’s first fund, Urban Renaissance Investment Partners LLC.
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