SEATTLE – November 17, 2016 – A joint venture of New York-based Tristar Capital and RFR Holding today announced it has acquired Amazon Phase VII from developer Vulcan Real Estate for $244 million.
Completed in 2015, the award-winning 12-story project at 400 Ninth Avenue North features 313,000 square feet of office space fully leased to Amazon, 5,700 square feet of ground-floor retail space fully leased to Sam’s Tavern and a four-level subterranean garage.
“We’re excited to enter the vibrant Seattle business community with this acquisition,” said David Edelstein, President of Tristar Capital. “We are long-term investors and look forward to exploring other opportunities that enable us to expand our presence in significant ways.”
In addition to a public plaza, the project includes a landscaped rooftop terrace with sweeping views of the city. A public art installation by local artist Dan Corson, titled “Nebulous,” is suspended above the public plaza, evocative of the changing environmental and technological climate of Seattle and the world.
“The high-quality nature of the building, coupled with Amazon’s strong credit, made for an attractive pairing for institutional investors,” said Ada M. Healey, Vice President of Real Estate for Vulcan Inc. “We are pleased to have worked with Tristar-RFR on the purchase.”
Amazon Phase VII is LEED Gold certified, and was designed by NBBJ and built by Turner Construction.
In 2015, the Washington State Chapter of NAIOP honored Vulcan with the Office Development of the Year award for its one million-square-foot expansion of Amazon.com’s South Lake Union headquarters, including Amazon Phase VI, Phase VII and VIII.
The transaction team was led by Kevin Shannon, Ken White, Michael Moll and David Milestone of Newmark Grubb Knight Frank, and supported by Tom Pehl, Lou Senini and Owen Rice from Seattle’s CBRE office.
“Core best-in-class office product in prime locations such as South Lake Union continues to be attractive, late cycle, to both domestic and foreign capital,” said Kevin Shannon, President of West Coast Capital Markets for Newmark Grubb Knight Frank. “This sale augments a recent trend, in Seattle especially, of new buyers entering this dynamic market.”
About Tristar Capital
For more than three decades, New York-based Tristar Capital has developed and maintained an expansive portfolio of real estate holdings in major metropolitan markets including New York City, Miami and Las Vegas. Led by David Edelstein, the company’s holdings include hotel, office, retail and mixed-use properties. Within its portfolio, Tristar has developed high rise condo developments in Manhattan, high street retail projects including Lincoln Road pedestrian mall in Miami Beach and Miracle Mile Shops in Las Vegas, adaptive reuse projects in Wynwood in Miami and the W South Beach Hotel and Residences.
RFR is a fully integrated real estate investment firm based in New York City with a core focus on select urban markets in the United States and Germany. Founded by Aby Rosen and Michael Fuchs in the early 1990’s, the firm has been an active force in the New York City and German real estate market for much of the past two decades. RFR’s portfolio has grown to include more than 100 properties located in select domestic and international markets. While its property portfolio is anchored in the Manhattan and key German commercial markets, RFR also has significant commercial, residential, hotel, and retail holdings.
RFR has a proven track record of adding significant value to the properties it acquires through property-level repositioning and strategic financial engineering. RFR has created an organization with deep experience in all phases of the property life cycle and is positioned to take advantage of market opportunities.
About Vulcan RealEstate
Seattle-based Vulcan Real Estate directs all real estate investment activities for Vulcan Inc., a Paul G. Allen company. Through strategic acquisitions and innovative development, Vulcan Real Estate has created a diversified portfolio of high-performing quality assets including office, biotech, residential and mixed-use projects. The company’s integrated team of real estate professionals offers a full range of development and portfolio management services from site selection and urban planning to build-to-suit construction, leasing and asset repositioning. Its real estate model is based on quality, sustainable development that builds new value across the entire community. To date, Vulcan has delivered 6.5 million square feet in 29 new office, biotech, residential and mixed-use projects, primarily in Seattle’s South Lake Union neighborhood. The company has 787 apartment units under construction in South Lake Union, the University District and Yesler Terrace as well as several more projects in pre-development planning. Vulcan Real Estate has completed $2.7 billion in development projects and has a $1.2 billion pipeline. For more information, visit www.vulcanrealestate.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents. For further information, visit www.ngkf.com