San Diego-based American Assets Trust Enters Agreement To Buy 27-Story City Center Bellevue for $228.8 Million
While some REITs have moved back to the sidelines, San Diego-based American Assets Trust, Inc. (NYSE: AAT
) is still actively acquiring property. This week, the firm agreed to buy City Center Bellevue, the 27-story office tower located at 500 108th Avenue NE in Bellevue, WA's central business district, for $228.8 million.
Seattle recently has found favor among major investors. In June, Brookfield Office Properties Inc. (NYSE:BPO
) entered the Seattle market with the acquisition of the Metropolitan Park East and West office towers for $210 million. The 856,000-square-foot office property, located at at 1730 Minor Avenue and 1100 Olive Way respectively next to I-5 and the South Lake Union submarket, was a combined 83% leased at the time of purchase.
The 495,950-square-foot City Center Bellevue is approximately 92% leased. Major tenants include Caradigm, HDR Engineering, Intelius, Sucker Punch Productions, Global Scholar, Cisco Systems and Morgan Stanley.
Eastdil Secured marketed the building on behalf of the seller, City Center Bellevue Property LLC, an affiliate of Beacon Capital Partners.
The REIT said it plans to structure the transaction to accommodate a 1031 tax deferred exchange.
John Chamberlain, the REIT's president and CEO, said the firm has long targeted the greater Seattle area, and Bellevue in particular, for investment and said he expects the REIT will continue to expand its presence in the area.
The REIT was formed in 2011 to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 by longtime real estate investor Ernest S. Rady, who serves as executive chairman of the firm's Board of Directors. Rady also founded Insurance Company of the West in 1971 and Westcorp, a financial services holding company.