For over a year now, HFF has been in the market as the broker of record looking for a new owner of one of Seattle’s most iconic locations, the 811,520 square foot Troy Block office complex. That buyer is Ponte Gadea, the real estate arm of a private capital high-net worth capital source based in Spain, which paid $740 million, or nearly $912 per square foot, to acquire the office complex in the city’s South Lake Union neighborhood, according to public documents.
This transaction represents the largest single asset trade by volume in Seattle history.
Troy Block encompasses the full city block in Seattle and is located at 300 Boren Avenue North in a neighborhood that is home to tenants in some of the fastest growing industries, including technology, media, software, global health and biomedical research. The property, which was completed in early 2017, was designed by Perkins + Will and constructed by Lease Crutcher Lewis. The property is comprised of two towers — the 12-story south tower has 387,476 square feet, and the 13-story north tower 415,452 square feet — that are LEED Gold certified. The property also incorporates an underground parking structure, which has 1,118 stalls, according to county records. The complex has a small, 4,000 square foot retail space, as well.
Troy Block was developed by Seattle-based Touchstone, which is now part of Urban Renaissance Group. The developer partnered with USAA Real Estate on the project, and Regions Bank provided construction financing.
The Spanish investment company has not been active in the Puget Sound region, but it has made sizable acquisitions in the Bay Area, another technology-centered real estate market. The company, which was founded by Amancio Ortega Gaona, the founder of global retail giant Zara, purchased in 2016 the iconic 360 Post Street building in San Francisco’s Union Square. Also known as the Tiffany Building, the property fetched $135 million, or approximately $1,365 per square foot, for the 96,882 square foot asset.
In September of 2017, the company purchased the Pacific Place mixed-use asset in San Francisco for approximately $475 million, or around $1,082 per square foot. Pacific Place is a mixed-use asset located at 22 4th Street at the corner of 4th and Market Streets in San Francisco. The property has a combination of office and retail space in the property, as well as the ownership of a ground lease for the 198-room Hotel Palomar that runs through 2097. The office part of the complex totals 235,000 square foot that is fully leased to Intuit. The retail portion of the property covers 204,000 square feet. This space was also fully leased at the time to Trader Joe’s grocery store, Old Navy, Levi’s and the Container Store.
The HFF investment advisory team representing the seller included executive managing directors Mark Gibson, Stephen Conley and Manny De Zarraga, senior managing directors Michael Leggett, Gerry Rohm and Coleman Benedict and directors Kevin Freels and Logan Greer, according to a statement from HFF.