Intercontinental Real Estate Corp., on behalf of one of its managed funds, has acquired its first commercial office asset in Seattle — Roosevelt Commons, a class A office complex in the University of Washington’s Innovation District (U-District) for $157 million.
Located at 4300 Roosevelt Way NE and 4311 11th Avenue NE, Roosevelt Commons comprises two mid-rise office buildings of five and six stories totaling 229,299 square feet, as well as two parking structures accommodating 432 automobiles. Roosevelt Commons is within walking distance from the new Link U-District light rail station, one of three new stations now under construction along the mass transit system’s Northgate Extension. When it opens for service in 2021, the U-District station will connect the area to the Seattle CBD, SeaTac Airport and Bellevue, Wash. The property was 100 percent leased at closing, with 86 percent of the net rentable area leased to investment-grade credit tenants, including Seattle Children’s Hospital and the University of Washington.
Intercontinental, which also owns and manages more than 1,500 multifamily units in the Seattle market, will continue to invest over the long term in the building’s systems and finishes to maintain its class A position in the market.
“We have been searching for the ideal Seattle office investment with a particular focus on the U-District, which is in the early phases of tremendous change,” said Jessica Levin, Intercontinental’s senior director, acquisitions. “The combination of the new light rail station, new upzoning which calls for increased density in the area, and the University of Washington’s master plan will certainly reshape the U-District. We believe we are getting in at an opportune time in the U-District’s lifecycle.”
The acquisition increases Intercontinental’s portfolio in the Pacific Northwest to more than 2,000 multifamily units and approximately 300,000 square feet of commercial office space. Earlier this year, the firm acquired the Heartline, a 72,130-square-foot, five-story office and retail asset in the Pearl District in Portland, Ore. Intercontinental’s diversified portfolio now includes more than 26 million square feet of commercial space and more than 12,000 multifamily units located across the United States.
