Hines REIT Adding Pair of Seattle CBD Assets

The Seattle Design Center includes a two-story, 130,165-sf building constructed in 1973 with 125 surface parking spots and a five-story, 260,519-sf building constructed in 1983 that includes underground parking for 276 vehicles. The buildings are connected by a glass atrium.

SDC contains a mixture of 70 showrooms, 15 designer offices, and approximately 80,000 sf of mainstream office tenants including the corporate headquarters of specialty retailer Sur La Table. The showrooms represent more than 1,500 manufacturers from around the world as well as local artisans from the Northwest. The complex is 90% leased.

Hines REIT acquired the property from Bay West LLC, a company whose ownership includes Tim Treadway. Pacific Real Estate Partners represented Bay West. Hines represented Hines REIT. Hines is responsible for the management and leasing of the REIT's assets.

Later this week, Hines REIT will close on 5th & Bell. Located in the Belltown neighborhood, the six-story building was constructed in 2002 and is currently 84% leased to four tenants.

Koninklijke Philips Electronics NV, a global electronics company, leases 119,999 sf or approximately 61% of the building. The company's lease, which expires in June 2012, includes one three-year extension option.

Edelman, a public relations firm, leases 20,822 sf or approximately 11% of the building. Its lease, which expires in August 2014, includes an option to negotiate a renewal during the second to last year of the lease term based on then-current market rates. The remaining lease space is leased to two retail tenants.

Hines REIT commenced operations in November 2004 and primarily invests in institutional-quality office properties located in the US. Including this acquisition, Hines REIT currently owns interests in 32 office properties located in 20 cities throughout the US and one mixed-use office and retail complex in Toronto.