In another record-breaking Seattle transaction of $199 million, or $884 per square foot, First Hill Medical Pavilion was purchased by Chicago-based Heitman, a multi-national real estate investment management firm, and Denver-based NexCore, a top-ranked national healthcare real estate firm, for an institutional investor. The sellers were Dallas-based Trammell Crow Co. and Seattle-based Washington Capital Management.
The fully leased 225,000-square foot , Class-A medical office building is located at 1124 Columbia Street and covers a whole city block. Located in the First Hill Medical District of Seattle immediately adjacent to Swedish Medical Center, the facility is the first medical office building of its class to be delivered to the Seattle market in over 20 years, the companies stated.
“First Hill is a valuable medical office/life science acquisition for the Heitman-NexCore team,” says Ed Christen, NexCore’s executive vice president of finance and acquisitions. “The building is strategically located in the First Hill Medical District of Seattle, which is one of the most desirable medical office markets in the United States. The building is 100 percent leased and comes with a very strong rent roll, including a long-term lease commitment from Swedish on 65 percent of the building.”
This transaction marks a combined transaction volume of over $630 million between the two firms. CBRE’s Kevin Shannon worked on the transaction for the sellers, Trammell Crow and Washington Capital Management.
The property was originally developed by the Fred Hutchinson Cancer Research Center in 1974. The Infectious Disease Research Institute moved on to South Lake Union in 2012, and the building was bought by Trammell Crow and Washington Capital Management for $42.6 million.
The building then went through an extensive refurb, which was completed in the second half of 2015 and brought the structure to Class-A standards. The renovation added 65,000 square feet of office space and over 400 parking spaces, a complete rehabilitation of common spaces, mechanical, fire protection and electrical systems and tenant suites. The landmark medical building was redesigned by architecture firm CollinsWoerman, and built by Lease Crutcher Lewis, both Seattle-based companies.