Investcorp buys $223m office tower in Seattle

Investcorp, a major provider and manager of alternative investment products, announced that its US-based real estate arm has purchased a 41-story, Class A office building in Seattle, known as 901 Fifth Avenue, for approximately $223.5 million.
This acquisition is consistent with Investcorp’s new initiative of acquiring top-quality, well occupied, cash flowing properties in key gateway markets in the United States and represents the second acquisition under this strategy.
In February, Investcorp acquired 733 Tenth Street, a Class A office building in Washington, DC, for approximately $180 million.
901 Fifth Avenue is a 540,589 square foot, multi-tenanted office building located in Seattle’s central business district. The property is 90 percent occupied by a diverse roster of 46 tenants, involved in a broad spectrum of businesses, including technology, legal services and professional services. 
Seattle is one of the most desirable gateway markets for real estate investments in the United States, and has one of the lowest vacancy and highest projected rent growth rates. 
The region has an annual employment growth rate of 2.8 percent compared to the national rate of 1.9, and strong growth has been projected for the region over the next five years.
Babak Sultani, Real Estate Specialist at Investcorp, said: “We believe 901 Fifth Avenue offers a stable, long-term investment in one of the most dynamic gateway markets in the western United States. In the past year, we exceeded $400 million in gross asset values with this strategy and this acquisition further exemplifies our strategy of identifying alternative investment opportunities that we believe can deliver superior returns for Investcorp.”
He added: “What we liked about this property is that it is easily accessible via the region’s primary freeways and public transportation options, and is within walking distance to high-end restaurants, retail outlets, hotels, cultural attractions and Seattle’s court houses, which we believe fuels significant demand for office space from legal, professional services and technology firms.”
Investcorp purchased the property with its joint venture partner, Schnitzer West, an experienced real estate investment, development, and management firm with a current portfolio of 5.3 million square feet in the Seattle metropolitan area.

Source: Arab News