Morgan Stanley Real Estate’s core open-ended fund has acquired an office building in Seattle for $186m (€158m).
The 301,000sqft building, known as 8th + Olive, was sold by a venture between PGIM Real Estate, the real estate investment arm of Prudential Financial, and Talon Private Capital, according to public filings.
A document from the Ohio Bureau of Workers Compensation, show that Morgan Stanley acquired the property for its core open-ended fund, The Prime Property Fund.
The $18.6bn fund has a 37.5% weighting to West Coast markets, slightly below the NCREIF ODCE index. It has built up a sizeable entry queue, which stood at $1.6bn at the end of June.
Alfonso Munk, Americas chief investment officer for PGIM Real Estate, said: “The sale of 8th + Olive completed PGIM Real Estate’s and Talon Private Capital’s investment strategy for the property, and takes advantage of the strong appetite for downtown Seattle to maximize the return for our investors.
“We are extremely pleased with the substantial renovation led by Talon, resulting in our ability to attract dynamic new technology tenants.”
The property was first developed in 1981. The current occupancy of the building is around 85%, according to sources familiar with the asset.
