By Meghan Hall
Despite an extremely busy end to 2019 for Seattle’s commercial real estate investment market, 2020 is already off to a powerful start. Chicago-based Equity Commonwealth has entered into a contract to sell Bellevue’s Tower 333 for $401.5 million, or about $923 per square foot, according to the firm’s fourth-quarter earnings call. The buyer for the 435,000 square foot office complex was not disclosed.
The sale is expected to close around March 12th of this year and proceeds after contractual lease costs and transfer taxes are expected to come in at $317 million. According to Equity Commonwealth, the transaction is subject to the usual closing conditions and extension options, and there is no certainty the transaction will close.
Equity Commonwealth originally acquired the building, located at 333 108th Ave. NE, in November 2009 from Hines for $167,990,226.02. In August of 2018, Equity leased the entire building to Amazon, and the lease is term is 16 years. The Class A office tower is located in Bellevue’s central business district and features a half-acre outdoor plaza and eight levels of below-grade parking. The building was completed in 2008. Prior to Amazon, the previous tenant was Expedia.
“Today, we’re a fundamentally different company with a small portfolio of high-quality assets, a strong balance sheet and track record of consistent execution,” stated President and Chief Executive Officer David Helfand on the call. “…Our strategy will continue to be informed by market conditions, and we will be patient and disciplined in our evaluation of a broad range of investment options. We’re spending considerable time evaluating opportunities in the office and office-adjacent businesses as well as other sectors where we see attractive fundamentals.”
This is Equity Commonwealth’s second Bellevue disposition within a year. In April of 2019, the firm closed on the sale of the 10-story Bellevue Corporate Plaza and adjacent parking structure for $195 million. The 256,830 square foot complex was purchased by Acorn Development, a subsidiary of Amazon. At the time of the transaction, Equity Commonwealth had been planning a two-tower project, called Bellevue 600, for the site.
This is a developing story. Broderick Group, who represented Equity Commonwealth in the transaction, declined The Registry’s request for comment. The story will be updated as The Registry is able to confirm additional details.