By Jon Peterson
New York City-based Deutsche Asset & Wealth Management has paid $34 million or $465 per square foot to buy the 73,000 square foot office building in Pioneer Square sub-market of Seattle, according to sources familiar with the property.
The office building is a fully-leased asset located at 111 South Jackson Street. A company representative of the buyer declined to comment when contacted for this story.
The office building had been owned by New York City-based Brickman. When it had acquired the property it had been a vacant asset. The company hired the Seattle office of Colliers International to be the leasing agent on the property.
This firm was able to sign a long-term lease with Denver-based Galvanize to occupy all of the space. This company is a network of urban campuses where students and entrepreneurs can access the skills, knowledge and network they need to level up and make an impact. According to its Web site, the site at 111 South Jackson is its first location in Seattle. It has other locations around the country including in the South of Market district in San Francisco, two in Denver and two others in Colorado in Fort Collins and Boulder. It has one international location in London.
“We were very pleased to be able to sign the tenant for a long-term lease. I think that most of the current activity in the Pioneer Square sub-market involves more of a renovation and improvement to existing assets than the new development you are seeing in South Lake Union,” says Greg Inglin, a senior vice president with Colliers. He was involved in the leasing efforts.
The Pioneer Square submarket has strong operating fundamentals. “This is an area of Seattle that has current vacancy of 7.4 percent, through the mid-year point of 2015. There is 7.4 million square feet of office buildings in the area at this time. Investors for the most part in this area are seeking to buy existing assets,” said Inglin.
Brickman now owns one asset in greater Seattle market, according to its Web site. This is the 305,000 square foot Civica Office Commons in Bellevue. The company has owned this asset since 2006. It is still looking for additional office investments in the market going forward.
Brickman is a private equity real estate company. It typically invests in mid-sized transactions that require an equity investment somewhere in the range of $5 million to $25 million of equity. Its return requirements are usually in the mid to high-teens. The company is a value-add player investing in distressed and value-add properties and the purchase of performing, sub-performing and non-performing debt.