September 23, 2021 9:00 AM
Newmark announces that it has arranged the sale of Home Plate Center, a two-building, Class A, multi-tenant office campus located in the South of Downtown/Pioneer Square (“SODO”) submarket of Downtown Seattle.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Executive Managing Directors Ken White and Rob Hannan, Senior Managing Director Michael Moll and Director Rachel Jones, in conjunction with local leasing broker, Dwight Newell of CBRE, represented the seller, American Life. Vice Chairman David Milestone and Senior Managing Director Brett Green of Newmark were retained by the buyer, Jamestown, to procure new financing for the acquisition.
“Home Plate Center represents a unique opportunity to acquire a newer vintage, multi-tenanted, Class A asset in Downtown Seattle, where most new construction investment offerings have been single-tenant transactions,” said Shannon. “This sale to Jamestown marks their first acquisition in Seattle which is a testament to capital’s belief in the continued leasing recovery and performance of the market.”
Moll added, “With the continued rise in land values and escalating construction costs, Home Plate Center offers a compelling discount to replacement cost especially when taking into account the above market parking ratio and high-end tenant improvements at the property.”
The property, situated adjacent to T-Mobile Park and Lumen Field, spans 347,874 square feet and is 94% leased to nine tenants. The state-of-the-art property is LEED Gold certified and is the newest institutional office asset to be delivered in the SODO submarket, featuring advanced building infrastructure, redundant power capabilities and dark fiber connectivity.
The North Building is located at 1501 1st Avenue S and is comprised of 157,904 square feet of office space and 400 square feet of retail space. The South Building is located at 1521 1st Ave S and totals 182,974 square feet of office space and 6,596 square feet of retail space. Features include 12’ - 17.5” slab-to-slab ceiling heights, outdoor decks with Seattle skyline views, bicycle storage along with shower and locker facilities, a “Great Room” lobby with in-floor radiant heating and efficient, large floor plates.
The property benefits from its central location that offers direct access to the Highway 99 tunnel, the I-90 and I-5 freeways, and convenient public transportation access for bus and rail commuters through the Seattle Regional Transit Hub.
Class A SODO/PSQ & Waterfront buildings have fared extremely well, with Class A rents in the submarket increasing by 35% since 2015, outpacing the submarket as a whole (27%) and overall Class A Puget Sound market (25%), according to Newmark Research. Seattle’s tremendous growth in the last five years has changed the SODO/PSQ & Waterfront submarket from a previously hybrid/flex industrial and office submarket to a dynamic and desire able office submarket. The submarket has been the beneficiary of tenant migration from tenants seeking relief from rising office rents in the CBD and Lake Union while offering investors the benefit of much more diverse tenant consideration.
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. To learn more, visit nmrk.com or follow @newmark.
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