SEATTLE—Union Investment is adding to its real estate portfolio in Seattle. The Hamburg-based real estate investment manager has acquired the Amazon Phase VI building for around $299 million.
The property is almost fully leased on a 15-year lease. Completed in 2014, the building comprises some 395,000 square feet of rental space and was purchased for open-ended real estate fund Unilmmo: Europa.
Union Investment bought the property directly from developer Vulcan Real Estate in an open market deal. The class A office complex has LEED Gold certification and consists of two buildings, located at 515 Westlake Ave. North & 500 Ninth Ave. North.
"Seattle is one of the fastest-growing US cities, and highly attractive to young, well-educated employees, so it provides ideal conditions for our increased international focus," says Martin Brhl, head of Investment Management International at Union Investment. The nearly fully let 20-storey Millennium Tower in Seattle has been part of the UniImmo: Europa portfolio since 2003. Two years ago, Union Investment sold the Fifth & Pine building in Seattle for a substantial profit.
The new acquisition, Amazon Phase VI, is located in the established submarket of South Lake Union, which is popular with young tech companies. It is close to the banks of Lake Union and to the West Coast city's business district, according to a prepared statement.
Over the past decade, South Lake Union has been transformed from an industrial location into a vibrant mixed-use neighbourhood. The population of South Lake Union, which is already the largest office market in Seattle after the CBD, is expected to double in the next five years.
Seattle-based Vulcan Real Estate the developer of Amazon Phase VI, directs all real estate investment activities for Vulcan Inc., a Paul G. Allen company.
As GlobeSt.com previously reported, Vulcan Real Estate has led the redevelopment of South Lake Union, constructing more than 6.5 million square feet in 29 projects including the development of Amazon.com's 2.7-million-square-foot-campus.
Vulcan's senior director of marketing and leasing previously told GlobeSt.com that what helps his company's projects stand out from others are the many good public and private partners, consultants and collaborators. "With South Lake Union, we have a city and state that understood the vision and were very supportive in helping us reach our goals. We wouldn't have been able to accomplish what we did without that. Internally and externally, we have a lot of very talented team members," he said.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
