GLL Real Estate is to pay the California Public Employees Retirement System (CalPERS) $387m (€350m) for a Seattle office asset, according to sources familiar with the transaction.

The buyer is investing in the Safeco Plaza asset for Asian capital.

The acquisition of the 793,032 sqft office building is expected to close next week.

CalPERS owned the property through its Fifth Street Properties partnership, managed by CommonWealth Partners.

The seller has owned the property since 2005, when it paid $163m.

GLL beat several other capital sources for the asset, including a pension fund in the US and a core open-ended fund.

The price, at $488 per sqft, falls short of the mid-$700 per sqft that new fully leased properties are attracting in Seattle.

Safeco Plaza is an older property that has been recently renovated.

Built in 1969, it has gone through renovation in 2014 and 2015.

The 5% cap rate on the deal factors in the property’s existing net operating income.

The office building is now 98% occupied, with Safeco Insurance Company taking up two-thirds of the building.

The tenant has another 10 years on its lease.

The metropolitan area of Seattle is on pace to see $5bn of office-building sales this year, which would be an all-time record, according to sources that track the market.