Three Big Property Deals Mark a Week in Seattle

The Puget Sound Business Journal noted that the movement of three separate property deals totaling out at $118.8 million dollars shows improvement in the CRE sector in the area. The article notes that the transactions, all announced within a week beginning in late March, include:

The January 27th sale of two apartment properties in Kirkland as Colorado-based apartment investor Archstone purchased the buildings from Bellevue-based Continental Properties Inc. for $47.46 million. Continental previously bought the properties from the Seattle-based Skinner family in 2005 for $32.4 million.

The January 31st announcement that Griffin Capital Net Lease REIT Inc. purchased the West Willows Technology Center from Arden Realty for $40 million. The 155,830 square foot office park in Redmond includes three buildings and is fully occupied by AT&T Wireless Services Inc. under a long-term lease.

Redhill Realty Investors, a private equity investment firm, also announced on January 31 that it had sold the Hampton Bay Apartments in Kent for $31.4 million to Hampton Bay of Vancouver.

For more news and information visit Blumberg Capital Partners.

CityCenterDC Breaks Ground

Construction began this week on six new buildings and a public plaza for the CityCenterDC Complex, a project that city officials say could cost $950 million and be one of the largest active developments on the East Coast according to the Washington Post The project is being 100% funded by equity financing with Qatari Diar Real Estate Investment Company as the anchor investor for the development. The financing was arranged by Barwa Bank’s investment banking subsidiary The First Investor. DC is leasing the property to Hines|Archstone for $500,000 annually over a 99-year period and expects to collect about $30 million annually in taxes according to the article.

Designed by Foster + Partners, CityCenterDC is a 10-acre, mixed-use development at the site of the old Convention Center in downtown Washington. The complex is expected to reach substantial completion by the fourth quarter of 2013. he first phase of the project, scheduled for completion in late 2013, is expected to include 185,000 square feet of retail, 458 rental apartments, 216 condominium units, 520,000 square feet of office and 1,555 parking spaces. A 350-room hotel and another 110,000 square feet of retail are planned for a second phase.

"This is one of the most valuable pieces of property in the world," said D.C. Council Chairman Kwame Brown. "It's going to create thousands of jobs and we have local equity participation, which means local business will own a piece of the development."

Mohammed Al Hedfa, CEO of Qatari Diar said, "We are delighted to provide the anchor investment in the TFI US Real Estate Fund. In conjunction with our co-investors and strategic partners, Hines|Archstone, we look forward to the realization of this landmark development."

For more news and information visit Blumberg Capital Partners.