Intercontinental Nabs its First Seattle Office Asset

SEATTLE—Intercontinental Real Estate Corporation, on behalf of one of its managed funds, has acquired its first Seattle office asset, Roosevelt Commons. The firm purchased the class-A office complex in the University of Washington’s Innovation District/U-District for $157 million.

Located at 4300 Roosevelt Way NE and 4311 11th Ave. NE, Roosevelt Commons comprises two mid-rise office buildings of five and six stories totaling 229,299 square feet as well as two parking structures accommodating 432 automobiles. The property was 100% leased at closing, with 86% of the net rentable area being leased to investment-grade credit tenants including Seattle Children’s Hospital and the University of Washington.

Roosevelt Commons is within walking distance from the new Link U-District light rail station, one of three new stations now under construction along the mass transit system’s Northgate Extension. When it opens for service in 2021, the U-District station will connect the area to the Seattle CBD, Bellevue and SeaTac Airport.

“We have been searching for the ideal Seattle office investment with a particular focus on the U-District which is in the early phases of tremendous change,” said Jessica Levin, Intercontinental’s senior director of acquisitions. “The combination of the new light rail station, new up-zoning which calls for increased density in the area and the University of Washington’s master plan, will certainly reshape the U-District. We believe we are getting in at an opportune time in the U-District’s lifecycle.”

Intercontinental, which also owns and manages more than 1,500 multifamily units in the market, will continue to perform long-term investments in the building’s systems and finishes to maintain its class-A position in the market.

“With the acquisition of Roosevelt Commons, Intercontinental continues to grow its Seattle footprint,” Levin tells GlobeSt.com. “This is a market where we see strong fundamentals and sustainable growth. We will continue to seek opportunities for further expansion within all asset classes, including future development opportunities.”

The acquisition increases Intercontinental’s portfolio in the Pacific Northwest to more than 2,000 multifamily units and approximately 300,000 square feet of commercial office space. Earlier this year, the firm acquired the Heartline, a 72,130-square-foot five-story office and retail asset in the Pearl District in Portland, OR. Intercontinental’s diversified portfolio now includes more than 26 million square feet of commercial space and more than 12,000 multifamily units located across the United States.

Jeffrey Weber and Jason Flynn from Eastdil Secured’s San Francisco office represented both parties in the transaction.

According to the Washington State office of financial management, King County alone has added 90 new residents per day since 2010. During the last five years, that number is closer to 115 new residents per day.