“With this successful transaction, we continue to rotate capital into Seattle’s CBD market where we will benefit from the ongoing growth of the Seattle economy and its highly diversified economic base,” Ivanhoé Cambridge executive vice-president of global investments Arthur Lloyd said in a statement.
Ivanhoé Cambridge has been active in Seattle over the past two years as it joined with partner Callahan Capital Properties (CCP) to purchase a 100 per cent interest in two adjoining office properties in downtown Seattle, 1111 Third and Second & Spring, for approximately US$280 million in November 2014.
Ivanhoé Cambridge and CCP also acquired 100 per cent of Seattle’s Wells Fargo Center, a 47-storey class-A office tower with 983,600 square feet of leasable space, in June 2013.
Hines will manage The Summit
The area of the two class-A office buildings in Bellevue totals 524,130 square feet and the Hines Global REIT acquisition also includes a development site (Summit III) that is fully entitled for 330,409 square feet of additional office space.
“We are attracted to this opportunity due to the project’s desirable location in the Bellevue submarket,” Hines Global REIT president and chief executive officer Sherri Schugart said in a news release. “High-quality building materials, a beautifully landscaped outdoor plaza and an expansive, modern lobby make it one of the most attractive projects in the market.”
The property is 94.7 per cent leased to 11 tenants, including New York Life Insurance, Perkins Coie, Puget Sound Energy and Sterling Savings Bank. International real estate firm Hines will manage The Summit on behalf of Hines Global REIT.
The Summit I and Summit II towers are 11 and 13 storeys and were completed in 2002 and 2005, respectively. The Summit III site, which includes a completed seven-storey subterranean parking garage, could accommodate a 15-storey class-A office tower.
Summit III presents build-to-suit opportunity
“Summit I and II are among Bellevue’s premier office developments,” said Hines senior managing director Ty Bennion. “We are excited to control one of the premier build-to-suit opportunities in the northwest with the 330,000-square-foot Summit III tower, which we could deliver for occupancy in 24 months.”
The complex includes The Summit Room — which combines the functions of a lobby, building lounge and meeting area — as well as a fitness centre, a conference centre, the Café Pogacha restaurant and the Bright Horizons childcare facility.
Montreal-based Ivanhoé Cambridge is a real estate subsidiary of the Caisse de dépôt et placement du Québec, one of Canada’s leading institutional fund managers. Through multiple subsidiaries and partnerships, Ivanhoé Cambridge holds assets valued at more than $42 billion, primarily in Canada, the U.S., Europe, Brazil, Mexico and Asia.
Hines is a fully integrated real estate investment and management firm that’s been investing in real estate and providing acquisition, development, financing, property management, leasing and disposition services for more than 55 years. It has offices in 78 cities across the United States and 18 other countries, and controlled assets valued at approximately $30.7 billion as of June 30, 2014.
Hines Global REIT is sponsored by Hines and owns interests in 41 real estate investments in the United States and internationally.