German investment firm Deka Immobilien has bought Google’s Lakefront Blocks office campus for $802m (€693m).
Newmark and Vulcan Real Estate said they have sold the 635,000sqft Lakefront Blocks in Seattle’s South Lake Union neighbourhood.
Completed in 2019, the Lakefront Blocks include two full city blocks, each developed with two six-storey office buildings.
The disposal excludes the Helm and Mera apartment towers located above the office buildings.
Ada M Healey, Vulcan Real Estate’s chief real estate officer, said: “The Lakefront Blocks, with its world-class views, sustainable design features and strong credit tenancy is truly one of South Lake Union’s trophy assets.”
The property was offered for sale in September 2021 with each block marketed independently.
“The strong interest we received in the property is testament to the enduring quality of this institutional-grade investment,” Healey said
Kevin Shannon, co-head of US Capital Markets at Newmark, said: “This project, in my opinion, was the best core office offering on the West Coast in 2021.
“The combination of credit, asset quality, ESG, South Lake Union submarket and lakefront location made this a truly generational opportunity, a factor that was reflected in the intense competition for the asset.”
Driss Oualkadi, Deka Immobilien USA’s president and head of acquisition and sales in North and South America, said: “We believe the Lakefront Blocks present long-term sustainable value given their exceptional lakefront location, interstate access and the quality and design features. Our significant investment of approximately $800m exemplifies Deka Immobilien’s strategy to increase its exposure to the most attractive global cities.
“Given its large tech industry and highly-educated workforce, Seattle continues to be one of the most desirable Gateway Cities in the US.”
To read the latest edition of the latest IPE Real Assets magazine click here.