By Meghan Hall
Skanska’s 2+U has made its mark on Seattle’s skyline, and its sale could soon make an impact on the Puget Sound investment market, as well. According to South Korean media outlets, Hana Financial Group and Hana Alternative Asset Management have entered into an agreement to purchase 2+U for 800 billion won, or more than $700 million, based on today’s conversion rates. Hana was selected as the preferred party for the acquisition of the tower in September.
The transaction has yet to close. Skanska has not commented on the sale, telling media that there were no transactions to report. In order to finance the acquisition, Hana plans to raise 300 billion won, or about $265 million, from Korean institutional investors.
The recently completed Class A+ office tower rises 38 stories and features 17,000 square feet of local retail and arts and culture space. In all, the building totals 701,000 square feet.
The building is 100 percent leased. The biggest tenant is Qualtrics, who took 275,000 square feet across 13 floors in the fall of 2019. Other tenants include Dropbox, who signed up for just under 121,000 square feet, as well as global co-working firm Spaces, who occupies 91,000 square feet. Indeed.com is also located within the tower, where it has leased 200,000 square feet. Leases range from 10 to 15 years or longer, and the annual yield is about seven percent.
If the deal closes, this will be Hana’s second major buy in the Seattle market. At the end of 2019, the Seoul, Korea-based investor purchased F5’s luxury hotel, The Sanctuary, for just under $175 million. The hotel portion of F5 Tower includes 189 luxury rooms. Originally, the hotel was slated to be operated by SLS, a luxury hotel brand who abruptly terminated its operations contract at the end of 2017. The hotel and spa is located on floors three through 15 of the building, located at 801 Fifth Ave.
If the deal for 2+U moves forward, it will be one of the largest transactions of 2020 to date. Other big regional sales to close this year include REI’s decision to sell its Spring District headquarters to Facebook for $390 million, as well as Brookfield’s acquisition of Block 16—also in Bellevue—for $365 million.