At $884 per sq. ft., transaction sets new Seattle commercial office sale high-water mark
Seattle, January 14, 2016 – CBRE Group, Inc. announced it represented a joint venture between Trammell Crow Company (TCC) and the clients of Washington Capital Management, Inc. (WCM) in the sale of First Hill Medical Pavilion in Seattle, Washington, for $199 million. An institutional investor advised by Chicago-based Heitman and Denver-based NexCore Group purchased the 225,000-sq.-ft. medical office building. At $884 per sq. ft., the transaction set a new high-water mark for a commercial office building sale in Seattle (on a per sq. ft. basis).
The building is 100 percent leased to Swedish Health Services, Seattle Medical Associates, CellNetix and Theraclone.
The brokers representing the seller included Lee Asher, Chris Bodnar, Tom Pehl, Kevin Shannon and Ken White. Chris Bodnar and Lee Asher of CBRE’s Healthcare Capital Markets Group teamed with Tom Pehl of CBRE’s Investment Properties team and Kevin Shannon and Ken White to represent the seller in the transaction.
“This was a rare opportunity to acquire a landmark medical office project in one of the most desirable medical office markets in the U.S.,” said Mr. Bodnar, executive vice president, Healthcare Capital Markets Group, CBRE.
“First Hill Medical Pavilion is the ‘next generation’ in healthcare construction and the strong medical demand and limited opportunities for development in the neighborhood should allow for continued growth in market rental rates,” said Mr. Pehl, senior vice president, Investment Properties, CBRE Capital Markets.
Trammell Crow Company and Washington Capital Management, Inc., on behalf of its clients, acquired the property for $42.6 million in January 2013 with the objective of transforming it from a life science building to a state-of-the-art medical office building. Over the past three years, the project was expanded to include an additional 65,000 sq. ft. of office space spread across six floors and a 415-stall subterranean parking garage. Renovations to the building also included a two-story main lobby, new building MEP infrastructure, landscaping and plaza improvements.
First Hill Medical Pavilion is situated in the Seattle First Hill submarket, the heart of the premier hospital and medical services hub in the Puget Sound region. The building features a subterranean pedestrian tunnel linking the building with Swedish Medical Center. The project is situated on a full city block bounded by Boren Avenue, Minor Avenue, Columbia Street and Marion Street.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
About Trammell Crow Company
Trammell Crow Company (TCC), founded in 1948, is one of the nation’s leading developers and investors in commercial real estate. The Company has developed or acquired nearly 2,600 buildings valued at nearly $60 billion and over 540 million square feet. As of September 30, 2015, TCC had $6.7 billion of projects in process and $4.0 billion in its pipeline.
Trammell Crow Company’s teams are dedicated to building value for its clients with professionals in 16 major cities throughout the United States. The company serves users of and investors in office, industrial, retail, healthcare, multi-family residential, through its operating subsidiary High Street Residential, and mixed use projects. For those who occupy real estate, TCC can execute the development or acquisition of facilities tailored to meet its clients’ needs. For investor clients, the company specializes in joint venture speculative development, acquisition/re-development ventures, build-to-suit development, or providing incentive-based fee development services.
TCC is an independently operated subsidiary of CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, and the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). For more information visit www.TrammellCrow.com.
About Washington Capital Management, Inc.
Washington Capital Management, Inc. (WCM) is an employee owned investment advisory firm founded in 1977. WCM headquarters are located in Seattle, Washington, with branch offices in Portland, Spokane, Anchorage, Southern California and Northern California. WCM manages assets in real estate equity, real estate debt, fixed income and equity strategies; primarily for institutional clients. WCM provides a diverse menu of investment products, including equity real estate investments, commercial mortgages, and construction loans. Visit www.wcmadvisors.com
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