SEATTLE-CommonWealth Partners, a company based in Los Angeles acting on behalf of CalPERS, has agreed to buy the 42-story Russell Investments Center here downtown for $480 million. Northwestern Mutual, the finance firm based in Milwaukee, was the seller.
The 872,026-square-foot tower was built in 2006, and is the tallest new high-rise building in the central business district, but lost its major tenant when Washington Mutual went under. Most amazing is that CBRE leasing agents Jesse Ottele, Brandon Weber and Owen Rice were able, over a span of two years, to increase occupancy in the building from 30% to 95% today. Tenants include the namesake Russell Investments, as well as JPMorgan Chase, Boeing, Zillow and Nordstrom. The building includes a park-like deck on the 17th floor.
CBRE vice chairman Kevin Shannon said in a statement today that there were 34 prospective buyers for the asset, “highly unusual for a building this size.” Shannon led the team that handled the sale for Northwestern.
Paul Hanson, managing director for Northwestern’s real estate investments, said in a separate statement that the sale will generate significant value for policy owners. “Our real estate investment strategy typically focuses on long-term holds, but the Seattle real estate market rebounded more quickly than we anticipated and we were able to realize significant gains in a fairly short period of time,” he said. His firm bought the building in fall 2009 for $115 million.
CommonWealth is adding to its Seattle holdings, which include the nearby Safeco Center, said partner Rick Lewis. “These investments are well-positioned to benefit from the continued momentum in the leasing market,” he said. Lewis said his firm has more than $5 billion to invest across major US markets in the next several years.
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