By Jon Peterson
The Tennessee Consolidated Retirement System out of Nashville, Tenn. has approved for disposition the 142,156 square foot Commons 90 office asset in Bellevue for sale, as stated by the pension fund in an e-mail. The property is a two-building complex located at 15800 and 15900 SE Eastgate Way.
The property is currently managed by New York City-based Clarion Partners. The real estate manager declined to comment when contacted for this story. It has a company policy of not commenting on either acquisitions or sales until they have been finalized. Clarion does have a local office in Seattle at 601 Union Street.
Tennessee Consolidated has owned Commons 90, formerly known as Eastgate Office complex, since December of 2007. The pension fund had paid $41.2 million or $290 per square foot at that time, as stated by the investor in an e-mail. The property has been held by the pension fund as a separate account investment that was sourced through Clarion.
There is no clear indication what the price point might be with the sale of this property now. There have been two office building sales in the immediate are of Commons 90 in the past year. According to public records, Sunset North sold for $335 per square foot in April 2016 to M-M Properties of Houston, and Lincoln Executive Center was traded for $276 per square foot in October of last year to Denver-based Miller Global Properties.
Tennessee Consolidated is a pension fund that invests and sells real estate on a separate account basis in many markets around the country. The separate account structure is one that the pension fund uses for most of its investing. This is typically done for the purchase of core assets. The managers with which it works besides Clarion are J.P. Morgan Asset Management, Deutsche Asset Management’s Alternatives & Real Assets, Barings Real Estate Advisers, BlackRock and L&B Realty Advisors.