By Jack Stubbs
Morgan Stanley recently acquired the nearly 301,000 square foot 8th and Olive office building in Seattle as part of the company’s prime property fund.
On Thursday, November 30th, the 8th and Olive building in downtown Seattle sold for $186 million or roughly $618 per square foot, according to public records filed with King County. New York-based Morgan Stanley is a leading global financial services firm that provides investment banking, securities, wealth management and investment management services. The acquisition was for the company’s prime property fund, its core open ended fund. The seller of the asset was PGIM Real Estate, a global real estate investor.
The asset is located at 720 Olive Way and sits in close proximity to major retail locations such as Pacific Place, Westlake Center, Nordstrom and Macy’s. The property is also located close to various hotels and entertainment and service options in Seattle’s downtown core and is adjacent to the Pike/Pine corridor. The Class A asset is less than a mile from Seattle’s Pike Place Market and roughly one mile from access to Interstate-5, a prominent transit corridor.
Built in 1981, the 20-story 8th and Olive building (formerly 720 Olive) totals 300,710 rentable square feet. The multi-tenant Class A building has a typical floor plate of 15,721 square feet, according to the property’s web site. The property includes seven upgraded elevators and a 4-level below-grade parking structure containing 212 stalls. The building also features an IP security camera monitoring system and a key-card access system for all entrances. Additionally, the building has a renovated lobby, conference facility and upgraded fitness center, as well as an expanded bike storage area. There are currently 46,986 square feet available for lease on floors five through seven of the building.
Founded in 1935, Morgan Stanley is one of the nation’s preeminent wealth management and investment firms. The company is an active presence in the real estate investment world, striving to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base including governments, institutions, corporations, and individuals worldwide, according to its web site.
As part of its investment management strategy, the company deals with real assets, private credit and equity and global liquidity, among other capabilities. As part of its U.S. property fund, the company seeks to provide long term capital appreciation by investing in equity securities of companies in the U.S. real estate industry, according to its web site.
PGIM Real Estate, founded in 1970, is the real estate investment business of PGIM, Inc., the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). The firm offers its clients real estate equity, debt, and securities investment strategies, according to its web site. As of June 30th 2017, PGIM had $49 billion net assets under management, and has industry professionals in 18 cities across the Americas, Europe and Asia Pacific.
PGIM identifies and develops strategies in both established and emerging markets to create opportunity and add value for its investors. The company operates in all of the major real estate submarkets including office, retail, residential and industrial, as well as emerging asset classes such as self-storage and senior housing facilities.
(EDITOR’S NOTE: Previously inaccurate information written about the asset’s size and price per square foot has been corrected)