In one of the largest real estate transactions of 2010, Cole Credit Property Trust III Inc., a non-traded real-estate investment trust managed by Cole Real Estate Investment of Phoenix, purchased the City Center Plaza from Beacon Capital Partners for $310 million or about $530 per square foot.
The 583,179-square-foot, 26-story office tower at 555 110th Ave. NE is one of only three office buildings in Bellevue to achieve LEED Gold certification by the U.S. Green Building Council and has been the headquarters for Microsoft's Bing Division since its opening. Microsoft, whose lease runs through June of 2024 and has a reported base rent figure of $19.3 million, currently occupies approximately 96% of the buildings total rentable area. The property will generate a reported capitalization rate of 7.7% based on the projected annual income over the remainder of Microsoft's initial lease term.
City Center Plaza, which was completed in May of 2009, was acquired by Beacon Capital Partners as part of a $6.3 billion real estate portfolio from Blackstone Group in April 2007. Beacon Capital has come under pressure recently for its troubles in making debt payments, most notably on a $430 million loan secured by the 76-story Columbia Center in Seattle. The sale of City Center Plaza should infuse Beacon with some much-needed capital.
The Eastdil Secured team of Jason Flynn, Jeff Weber and Stephen Van Dusen represented Beacon Capital on the purchase, while Kim Kundrak, chief acquisitions officer, and Boyd Messmann, vice president of acquisitions, represented Cole, in-house.
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