Purchase of Tommy Bahama’s Headquarters at 400 Fairview Seals Amazon’s Community as the Region’s Hottest for Commercial Real Estate
Tommy Bahama’s head office structure cost a 2018 record rate of $338.5 million for the Puget Noise region.
Seattle’s South Lake Union neighborhood sealed its track record as the region’s most desirable business real estate place with the sale of Tommy Bahama’s head office for $338.5 million, a record cost for 2018 for all of Puget Noise.
The 400 Fairview structure, the home of the casual clothing company, remains in the neighborhood of internet retailing huge Amazon. The offer, the first in Seattle for Boston-based Pembroke Real Estate, exercises to about $969.28 per square foot, which CoStar’s data programs is the location record for the year.
“Seattle has actually been a target for us due to its long-lasting development potential and functional synergies with San Francisco, where we manage two assets,” stated Pembroke Vice President Cory Saunders, who called the South Lake Union community the most in-demand Seattle submarket.
The community simply north of downtown started to take shape when Paul Allen, a Microsoft co-founder, invested $30 million to acquire land there to develop a large park, according to the Discover South Lake Union website. Allen then formed Vulcan Realty and developed the land into a mix of workplace, retail and multifamily.
Today, South Lake Union is the second-largest workplace submarket in Seattle, with several brand-new structures going up in the past several years. Vacancies are low, and average rents, at $52.45 per square foot in Class A buildings, are amongst the highest in metropolitan Seattle, according to CoStar research study. Besides Amazon, major employers with office in South Lake Union consist of insurance provider Pemco, architecture company NBBJ and a number of health-care companies, consisting of University of Washington Medicine, Fred Hutchinson Cancer Research Center and Group Health.
Recent close-by sales consist of 501 Fairview, a brand-new structure that cost practically $269 million in 2015, and the Amazon Head office Phase VIII building, at 400 Ninth Ave. N., which sold for $244 million in late 2016. Amazon occupies 100 percent of both buildings, according to CoStar information.
The completely rented 400 Fairview building was developed by Skanska 3 years ago. The Swedish construction and development company offered a majority stake in the building in 2015 to TH Property, an affiliate of Nuveen, which is the investment supervisor for TIAA, a major pension fund investor and monetary services provider serving the scholastic, research, medical and government fields.
Skanska maintained a 10 percent interest in the building, which will be divested this fall. Skanska will keep managing the property following its sale to Pembroke.
Pembroke owns a number of homes in the United States and Europe, including in Washington, D.C., Boston, San Francisco, London, Munich and Oslo. Besides Boston and D.C., Pembroke has offices in London, Stockholm, Sydney and Tokyo.
400 Fairview, which has to do with 349,000 square feet, holds LEED Gold accreditation from the United States Green Structure Council.
Jason Flynn and Reid Rader of Eastdil Secured represented Skanska and TH Realty in the transaction.
More information on this sale is readily available by speaking with CoStar Sale Comp # 4373368.