Newmark Capital Markets has announced the $268.5 million sale of Tilt49, a newly constructed 11-story Class A office building totaling 290,573 square feet in Seattle. The office space in its entirety has been triple-net leased through 2033 to a prominent on-line retailer and technology company. The property also includes 1,646 square feet of retail that has been leased to Mighty-O Donuts.
Newmark Capital Markets President, West Coast Kevin Shannon, Executive Managing Director Ken White, Senior Managing Director Rob Hannan, Managing Director Michael Moll and Executive Managing Director Tim O’Keefe represented the seller, a joint venture of Des Moines-based Principal Real Estate Investors and Seattle-based Touchstone who developed the asset. The buyer was Takenaka Corporation out of Tokyo, Japan. The price per square foot was $924, which is approximately $40 higher than the recently sold adjacent Midtown 21 office property also leased to the same tenant.
“Our Newmark Capital Markets team strategically sourced the buyer via an ad hoc Asia/Pacific roadshow to four countries,” said Shannon. “Senior Managing Director Alex Foshay along with Rob Hannan led the effort. As a result, we identified a strong buyer and achieved record-setting pricing for a Seattle office property. Takenaka is a first time buyer in the Seattle market and plans a multi-generational holding period for this trophy asset.”
Built in 2017 and located at 1812 Boren Avenue, Tilt49 is a creative office property that offers easy access to more than 100 restaurants, 3,000 hotel rooms, 28,000 urban residential units and public transit. It is located in the heart of the Denny Triangle, one of Seattle’s top office markets. The Class A market within the Denny Triangle has seen an impressive 51 percent increase in average asking lease rates over the last three years. Additionally, the Denny Triangle and adjacent South Lake Union submarket represent the heartbeat of the tech and life science industries in Seattle. As testimony to that, the vacancy rate in these submarkets has been hovering under 3 percent for the past several quarters despite the development of more than 3.5 million square feet of new office space since 2014.
Urban Renaissance Group has been retained to manage the project for Takenaka.
About Touchstone and Urban Renaissance Group
Touchstone, a subsidiary of Urban Renaissance Group, LLC, is a Seattle-based full-service commercial real estate company, engaged in acquisitions, development, asset management, leasing, property management and ownership in Seattle, Bellevue, Denver and Portland. The strategic premise of the Urban Renaissance Group is that the form of the American City will change dramatically during the next 20 years. Urban Renaissance Group acts as a catalyst that understands and ignites that change, thereby building community, creating place, and generating fair returns for investors, as well as opportunities for its partners and employees. Learn more at www.urbanrengroup.com.
Newmark is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, Newmark’s strong foundation makes it one of the most trusted names in commercial real estate. Newmark’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing, corporate advisory services, consulting, project and development management, property and corporate facilities management services, valuation and advisory services, and capital markets services provided through its Newmark Capital Markets brand. For further information, visit www.ngkf.com.
Newmark is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.