By Jack Stubbs
Tacoma, a city on the southern edge of Commencement Bay on the banks of the Puget Sound, is an area in transition. And a Class A office property in downtown Tacoma recently changed hands. On Tuesday, October 2nd, the 1313 Broadway Plaza Building sold for $12.5 million, or approximately $134 per square foot, Pierce County records show. The buyer was X2 Broadway LLC, an entity affiliated with Luke P. Xitco based in Tacoma. The seller was 1313 Broadway LLC, an entity associated with Howard Freedman that shares the same address as PF Financial Services Inc., a real estate agency based in New York.
The transaction was recorded on October 5th.
The asset, called 1313 Broadway Plaza and located at 1313 Broadway, is a six-story, multi-tenant asset constructed in 1977 that totals 93,000 square feet, according to the property listing on loopnet.com. One of the largest office buildings in Downtown Tacoma, 1313 Broadway Plaza offers floor plates of 17,108 square feet and on-site structured parking.
According to the property listing written by Kidder Mathews, the asset—described as a multi-tenant value-add investment opportunity—is currently 76 percent occupied. Some of the current tenants include The Bank of New York Mellon, American Cancer Society and Merit Harbor Capital. The asset, which is located across the street from the Murano Hotel in the heart of downtown Tacoma, had various upgrades made in 2017 including a repainted building exterior; remodeling of several floors and lobby and common area upgrades.
The asset sits in the heart of downtown Tacoma and is just several blocks from the Museum of Glass and approximately four miles from the Port of Tacoma, which is one of the city’s primary economic drivers. The property is also near access to Interstate-5.
Preceding the recent sale of the 1313 Broadway building, there have been a number of other office and multifamily transactions in Tacoma in recent months, indicating that interest in the city remains. On June 20th, Heritage Bank acquired a 76,828 square foot medical office building—located at 3615 Pacific Ave.—from The Rush Companies for $11.625 million, or approximately $151 per square foot. And in mid-July, Starwood Property Trust acquired the Centennial I and II office buildings totaling roughly 240,000 square feet and located at 1949 & 2121 S State St. for $34.5 million, or just over $143 per square foot, from BC Warner Investments based in Utah.
More recently on September 28th, Newport Beach, California-based CWS Capital Partners spent $62 million, or approximately 358,381 per unit, to acquire the 173-unit Copperline at Point Ruston Apartments from Point Ruston Apartments LLC, an entity affiliated with JLW PR Management Inc. based in Bellevue. The sale of the asset, located at 5005 Main St. on Tacoma’s waterfront, was part of a larger $101.3 million transaction that included several other residential and commercial properties.