By Meghan Hall
Brookfield Asset Management earlier this week closed on two financial transactions involving some of its most well-known Puget Sound assets. According to public records, an entity affiliated with Kennett Square, Penn.-based Chatham Financial has paid Brookfield a total of $263.5 million to execute ground leases on Blocks 16 and 24 within Bellevue’s Spring District. Sources familiar with the deal have stated that Chatham acted on behalf of USQ Special Situations in the agreement. The deals closed on July 15th.
In the larger transaction related to Block 16, USQ Special Solutions paid $169.4 million. Brookfield originally acquired Block 16, which is located at 1288 123rd Ave., in the fall of 2020 for $365 million, or about $1,062 per square foot.
The building is currently 100 percent leased to Facebook. Facebook’s lease is expected to run through June 2033, but the company has renewal options totaling an additional 12 years. The property has 316,009 square feet of office space on levels two through 11, plus 12,807 square feet of retail space on level one, for a total building footprint of 311,233 square feet. The development also comes with about 900 parking spaces.
In the second deal connected to Block 24, USQ Special Solutions paid $94,133,103.45. The property is located at 1255 NE District Way, and Brookfield just acquired the building in May of this year for $200 million, or about $1,010 per square foot. The building is the newest addition to the Spring District and is also leased to Facebook. Block 24 totals 197,959 square feet.
In June of this year, Brookfield also purchased the GIX Building for $85 million, or about $850 per square foot. The property totals about 100,000 square feet and features a mix of design studios, incubation space, electronics prototyping labs and presentation spaces. The building is home to a number of graduate degree programs, professional programs and innovative tenants. Currently, Hyperproof, a continuous compliance SAAS company, as well as Educative, a software firm, and Resolute, an engineering firm, all occupy the building.
Chatham Financial is a financial risk management firm that specializes in a number of “real estate solutions”, according to its website. The firm specializes in valuation, debt management, LIBOR transition risk assessment and investment banking. Chatham’s real estate clients include major investors like Blackstone, Hines, Simon Property Group, and others.
As of this writing, Chatham Financial had not yet returned The Registry’s request for comment.