Home Commercial TIAA-CREF and Holland Earn 4% Cap Rate on Sale of Premiere on...

TIAA-CREF and Holland Earn 4% Cap Rate on Sale of Premiere on the Pine

By Jon Peterson

New York City-based TIAA-CREF and Vancouver, Wash.-based Holland Partner Group traded the 386-unit Premiere on the Pine apartment complex at around a 4 percent cap rate, according to sources familiar with the property.

TIAA-CREF was the majority equity partner on this property, while Holland acted as more of the development partner. Neither of these firms responded to phone calls or e-mails seeking comment for this story.

The listing agent on the sale of the property was Holliday Fenoglio Fowler. One of the people involved in the sale was Matthew Lawton, a managing director in the firm’s Chicago office. He did not respond to a phone message seeking comment for this story, either. The other parties working on the sale were Ira Virden, a managing director in the Portland, Ore. office and Gerry Rohm, a senior managing director in the San Francisco office.

The property was sold for around $240 million, and the buyer was Chicago-based Heitman. A company representative of Heitman declined to comment on the acquisition.

“I think this property will set a new standard for the top-of-the-line amenities for the Seattle market. These will include things like if you need take your clothes to and from the dry cleaner or you have some items to be taken the post office,“ says Tim McKay, a vice president with Colliers International. He works in the multi-family investments group for the company in its Seattle office. Some of the other features include an indoor dog run and a 3,000 square foot balcony that wraps around the south and west side of the building given occupants panoramic views of the surrounding area.

The project is located at the intersection of Pine Street and 9th Avenue. The property, which was completed last year, has one, two and three-bedroom condominium units averaging 797 square feet each.

The project is located within the central business district part of downtown Seattle. This part of Seattle remains very tight from a vacancy perspective. This now stands in the range of 2 percent to 3 percent, according to sources that track this information.