Ivanhoé Cambridge and its partner, Callahan Capital Properties, has acquired a 100% interest in two adjoining office properties in downtown Seattle, 1111 Third and Second & Spring, for approximately $280 million.
1111 Third is a 34-story, 572,500 ft2 (53 000 m2) Class-A office building that has recently undergone significant capital improvements, including an upgraded lobby and storefront, new building systems and an expansive new fitness centre. Located in Seattle’s vibrant downtown core, the property features outstanding views of Elliott Bay and the Olympic Mountains, as well as a six-level underground garage, convenient access to public transportation, freeways and an abundance of nearby retail and dining amenities.
Second & Spring, located at 1100 2nd Avenue, is an adjoining five-story, 135,000 ft2 (12 500 m2) historic office property constructed in 1906 and redeveloped in 2013. The building offers high-quality creative space with 15-foot-high (4,5 m) exposed ceilings, 26,000 ft2 (2 400 m2) floor plates and an extensive window line allowing an abundance of light.
“1111 Third and Second & Spring are terrific properties that complement our existing ownership stakes in the nearby 999 Third and U.S. Bank Centre buildings,” said Adam Adamakakis, Executive Vice President, Investments, United States, Ivanhoé Cambridge. “With a critical mass of 2.6 million ft2, or approximately 13% of Seattle’s Class A office CBD market, we are well positioned to benefit from the ongoing growth of the Seattle economy and its dynamic underlying industries.”
Tim Callahan, Chief Executive Officer of Callahan Capital Properties, noted: “As one of the top-performing economies in the country, we are very optimistic about the continued strength and outlook for Seattle. These properties exemplify our focus on investing in markets with compelling long-term growth prospects and in properties with opportunities to enhance value.” Mr. Callahan added: “We are very pleased with the success we have achieved to date in growing our platform with Ivanhoé Cambridge to 8.1 million ft2 and will continue to capitalize on the momentum to build a leading office platform in major gateway markets across the U.S.”
This acquisition is Ivanhoé Cambridge’s seventh with Callahan Capital Properties, bringing the partners’ U.S. office platform investments to close to US$2.7 billion.