Ivanhoe Cambridge and CCP buy more Seattle office space

Ivanhoé Cambridge and partner Callahan Capital Properties (CCP) are continuing their string of acquisitions through the purchase of a 100 per cent interest in two adjoining office properties in downtown Seattle, 1111 Third and Second & Spring, for approximately US$280 million.

Ivanhoe Seattle Office TowersThe 34-storey, 572,500-square-foot, class-A 1111 Third office building recently underwent significant capital improvements, including an upgraded lobby and storefront, new building systems and a new fitness centre. The property provides outstanding views of Elliott Bay and the Olympic Mountains and features a six-level underground garage, convenient access to public transportation and freeways, and an abundance of nearby retail and dining amenities.

Second & Spring, at 1100 2nd Ave., is an adjoining five-storey, 135,000-square-foot historic office property built in 1906 and redeveloped in 2013. The building features 15-foot-high exposed ceilings and an extensive window line to allow in lots of light.

A large presence in Seattle

“1111 Third and Second & Spring are terrific properties that complement our existing ownership stakes in the nearby 999 Third and U.S. Bank Centre buildings,” said Adam Adamakakis, Ivanhoé Cambridge executive vice-president of United States investments. “With a critical mass of 2.6 million square feet, or approximately 13 per cent of Seattle’s class-A office CBD market, we are well-positioned to benefit from the ongoing growth of the Seattle economy and its dynamic underlying industries.”

“As one of the top-performing economies in the country, we are very optimistic about the continued strength and outlook for Seattle,” said CCP chief executive officer Tim Callahan. “These properties exemplify our focus on investing in markets with compelling long-term growth prospects and in properties with opportunities to enhance value.”

Montreal-based Ivanhoé Cambridge — a real estate subsidiary of institutional fund manager Caisse de dépôt et placement du Québec with a $40-billion portfolio consisting mainly of shopping centres, office and multi-residential properties in Canada, the United States, Europe, Brazil and Asia — joined forces with CCP in December 2012 to develop its American office real estate platform and manage its expanding office portfolio.

Ivanhoe’s seventh purchase with CCP

This acquisition is Ivanhoé Cambridge’s seventh with CCP, bringing the partners’ U.S. office platform investments to close to US$2.7 billion. A CCP affiliate continues to be an equity partner and the asset manager for these previously acquired properties: 330 Hudson, 1211 Avenue of the Americas and 1411 Broadway in New York City; 10 and 120 South Riverside Plaza in Chicago; and 999 Third Ave. in Seattle.

“We are very pleased with the success we have achieved to date in growing our platform with Ivanhoé Cambridge to 8.1 million square feet and will continue to capitalize on the momentum to build a leading office platform in major gateway markets across the U.S.,” Callahan said of his Chicago-based real estate investment firm.

Within the past two years, Ivanhoé Cambridge has also entered partnerships with:

* The Real Estate Principal Investment Area of Goldman, Sachs & Co., Greystar Real Estate Partners and other partners in a portfolio of 27 multi-residential properties in core strategic locations across the United States;
* Veritas Investments, Inc. to acquire multi-residential properties in San Francisco;
* and with Residential Land and Apollo Global Real Estate to acquire multi-residential properties in London.

Steve is a veteran writer, reporter, editor and communications specialist whose work has appeared in a wide variety of print and online outlets. He’s the author of the book Hot…

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Steve is a veteran writer, reporter, editor and communications specialist whose work has appeared in a wide variety of print and online outlets. He’s the author of the book Hot…

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