SEATTLE-A private investor operating as Vance Corp. has sold Plaza 600, a 213,979-square-foot, 20-story, class-A office building located at 600 Stewart St. in the northern and most dynamic section of the central business district, for $55 million. The buyer is locally based Joshua Green Corp., a private investor, in conjunction with its partner in the deal, Urban Renaissance Group.
CBRE’s Kevin Shannon and Todd Tydlaska from the firm’s Los Angeles office and Steve Storrar in the local office represented the seller. Storrar’s long-standing relationship with the seller, coupled with his comprehensive understanding of the current investment atmosphere in Seattle, helped his team and Vance position Plaza 600 for the eager investor market.
“This was a well located, value-add deal in one of the hottest CBD markets on the West Coast,” Storrar says. “The property is currently 85% leased with significant short-term rollover, giving the new owner a tremendous opportunity to reposition the asset and take advantage of the strong rent growth Seattle continues to experience due to their broad-based economic recovery led by technology tenants.”
At the time of sale, 70% of the in-place leases at Plaza 600, which was originally constructed in 1969, were at below-market rents and scheduled to roll over in the next four years. CBRE considers this perfect timing for the sale, given the accelerating rents in the CBD. The property’s location is what market experts refer to as the “Main and Main” of Seattle’s CBD, at the confluence of Denny Triangle and the main retail corridor, as well as the Westlake Center central transportation hub.
“There is a shortage of value-add opportunities in major CBDs in the Western U.S., so this was a highly competitive bid process that generated a significant amount of interest,” Shannon added. “We had interest from private and institutional buyers, both domestically and internationally. Ultimately, the winning bidder was a private investor that has been part of the fabric of Seattle for more than 100 years.”
JGC owns several retail and office properties in the local area, including Lynnwood, Shoreline, Bainbridge Island, Kirkland, Seattle, Newcastle and Spokane.
Shannon and Tydlaska could not be reached by GlobeSt.com before deadline to discuss the buyer’s plans for the property or any financing details for the transaction.
CBRE is no stranger to Seattle’s office towers. As GlobeSt.com previously reported, in September 2011 the firm was appointed management and leasing roles for the Westlake Center Office Tower, located in the heart of downtown. The 25-story high rise building had recently been purchased by TIAA-CREF for $119.4 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
