SAN FRANCISCO, CA – May 31, 2011 – (RealEstateRama) — PCCP, LLC has announced that it has partnered with Principal Real Estate Investors, the fourth largest institutional real estate manager in the United States, to acquire a 253,769 square foot class A office building located at 705 5th Avenue South in Seattle. The property is located within the Pioneer Square submarket, which is situated just south of the Seattle CBD, and is 98 percent vacant. The joint venture acquired the property from a private owner in an off market transaction.
Amazon, who occupied the building since it was built in 2001, vacated the building at the end of April of this year as part of a corporate consolidation.
“The most compelling aspect of this acquisition for us was the opportunity to own a “best in class” building in the south Seattle CBD submarket at a time when leasing in the Seattle area is showing strong momentum. We were able to purchase a prime office building in an established location at a substantial discount to replacement cost,” said Bryan Thornton, Partner with PCCP.
The office building is within the Union Station office complex, a five-building, 1.1 million square foot development consisting of mid-rise office buildings over a central 1,100 stall parking garage and the restored Union Station railroad depot. The Union Station project was developed from 1998 to 2002 and enjoys excellent access to I-90, the primary connector between Seattle and the Eastside markets of Bellevue and Redmond, as well as direct access to the Metro Transit bus tunnel connecting Pioneer Square with the Seattle CBD and residential neighborhoods to the north and the Sounder Transit light rail to the south and the airport. The property is also immediately adjacent to both Qwest and Safeco fields, home to the Seattle Seahawks and Mariners respectively.
Morgan Deal, of Principal Real Estate Investors, also observed that the building quality, access to public and private transportation corridors, and surrounding environment will allow the property to compete with the upper echelon of Class A buildings throughout the Seattle CBD. “There is distinct market momentum for technology related firms to target locations not only in close proximity to downtown Seattle, but the Pioneer Square area in particular due to the architectural character of the area, entertainment and service amenities, and regional transportation access.”
The allure of the submarket is illustrated by the 300,000 square feet of leases executed by tenants within the last 120 days including Cobalt, Isilon and Zulily; as well as a large amount of companies currently in the market for office space. Jesse Ottele of CBRE will be the primary listing agent at the property.
About PCCP, LLC: PCCP, LLC is a premier real estate private equity firm focused on commercial real estate debt and equity investments. PCCP has over $6 billion under management in multiple closed-end funds and joint ventures with institutional investors. With 33 investment professionals and 55 employees across four offices located in New York, San Francisco, Sacramento and Los Angeles, PCCP invests throughout the United States. Learn more about PCCP at www.pccpllc.com.
About Principal Real Estate Investors: Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States based on tax-exempt assets under management and manages or sub-advises $35.4 billion in commercial real estate assets. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.