Seattle — Newmark announces it has arranged the sale of 1918 Eighth Avenue, a 668,886-square-foot premier office tower, located in the heart of Downtown Seattle’s burgeoning South Lake Union/Denny Triangle submarket for a total of $625 million.
Newmark’s Co-Head of Capital Markets Kevin Shannon, Vice Chairman and Divisional Head of
International Capital Markets Alex Foshay and Executive Managing Directors Ken White and RobHannan, in cooperation with Vice Chairman Nick Kucha, represented the seller, institutional investors advised by J.P. Morgan Asset Management. Hudson Pacific Properties (“HPP”) and Canada Pension Plan Investment Board (“CPP”) acquired the asset. Newmark’s Vice Chairman David Milestone and Senior Managing Director Brett Green procured new financing for the buyer.
“Since the onset of the pandemic, Seattle has emerged as one of the top performing office markets in the nation,” said Shannon. “The fundamentals are clearly healthier and the recovery ofoffice using jobs since the second quarter is far stronger than any other major market nationallywhich is contributing to the resilience of its fourth-quarter sales velocity.”
“1918 Eighth Avenue is one of Seattle’s elite office assets given its superb tenancy, stellar physical characteristics, and tremendous location in one of the country’s premier office markets. HPP and CPP have acquired a gem,” added Hannan.
Built in 2010, the LEED-Platinum certified, 36-story property features 6,697 square feet of ground-floor retail space, a central conferencing facility, a 4,000-square-foot exclusive fitness center, a “Great Room” lobby design, sweeping skyline views and outdoor patio space. The property is ideally located within two blocks of light rail, streetcar service and dozens of bus lines. 1918 Eight Avenue also enjoys tremendous access to Seattle’s “Retail Core” and is in proximity to a variety of hotels and urban residential options.
According to Newmark Research, the South Lake Union/Denny Triangle submarket has seen 4.9 million square feet of positive net absorption since 2015, dropping the direct vacancy rate by 600 basis points to three percent—as of the third-quarter—while witnessing a 40 percent appreciation in average rental rates. The submarket’s recent performance is particularly impressive given the 5.4 million square feet of new office inventory delivered during the same period. Those deliveries increased the rentable inventory by nearly 45 percent, making South Lake Union/Denny Triangle the fastest growing submarket in the region over the past five years.
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion.