May 3, 2022 9:00 AM
Newmark announces it has completed the sale of 1101 Westlake, a recently developed trophy office building measuring 153,708 square feet and located in downtown Seattle’s South Lake Union submarket. The building is 100% net leased to Meta Platforms, Inc. The property traded from Invesco Real Estate, a global real estate investment manager, to BioMed Realty for an undisclosed amount.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Senior Managing Director Michael Moll, Executive Managing Director Ken White, Directors Rachel Jones and Jeff Hodson represented the seller in the transaction in conjunction with local leasing expert, Executive Managing Director Jesse Ottele. Newmark Vice Chairman Alex Foshay led the team’s foreign capital outreach as part of the marketing of the asset.
“Investment capital is looking for data points for office product especially and South Lake Union is a submarket for both office and life science that has clear positive fundamentals,” said Shannon.
Built in 2015, 1101 Westlake is a six-story, 153,708-square-foot creative trophy office building featuring LEED Silver Certification and spectacular water views of Lake Union. It is prominently located within Downtown Seattle’s South Lake Union submarket—one of the premier urban live-work-play neighborhoods in the United States and Seattle’s top-performing office submarket. Situated along Westlake Avenue North, the property enjoys proximity to multiple transportation options including the I-5 freeway, Highway 99 and the South Lake Union Streetcar. The location is also walkable to numerous shopping, dining and entertainment amenities.
“The mark-to-market upside in conjunction with the credit, asset quality, deal size and South Lake Union location generated significant investor interest from a wide range of capital,” said Moll.”
The property is 100% net leased to Meta Platforms, Inc. providing the new owner with a highly coveted credit income stream backed by one of the world’s leading technology firms. Meta strategically moved into space at the nearby Dexter Station in 2015 and has since tremendously grown its South Lake Union footprint.
The Puget Sound office market steadily improved at the start of the new year, according to Newmark Research, with solid fundamentals and indications that the overall outlook for 2022 is bright. Mask mandates in King County were rolled back in mid-March, an encouraging step that stimulated a return-to-office wave for some of the region’s largest employers. After several variant-related delays, companies like Microsoft, Meta and Twitter have finally begun to fill up the expanded footprints acquired over the past two years. While hybrid work models are certain to remain, the trend is unlikely to have any lasting negative impact, as employers are securing spaces capable of accommodating critical mass.
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with $91.8 billion in real estate assets under management, 582 employees and 21 regional offices across the U.S., Europe and Asia (as of December 31, 2021). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; http://www.invesco.com.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.