The Westlake Terry office property in Seattle’s coveted South Lake Union was recently the object of a $170 million transaction. Vulcan Real Estate and occupant Group Health Cooperative sold the Class A office property to noted real estate investment firm Kilroy Realty Corp., an entity that in recent months has ramped up its spending in the Pacific Northwest.
South Lake Union is one of the fastest-growing office markets in the United States, and sustained activity from online retailer Amazon.com and tech giant Microsoft Corp. has cemented the neighborhood’s appeal.
Located on an entire city block at 320 Westlake and 321 Terry Ave. North, the 320,399-square-foot Westlake Terry office campus was built in 2007. It is set on a major transit line, with other mass transit arterials located in the immediate vicinity. The two-building property has earned a LEED Gold certification from the U.S. Green Building Council, making it much sought after.
The campus is entirely leased, with Microsoft and Group Health Cooperative occupying more than 85 percent of the space.
Westlake Terry’s occupancy figures are a clear indicator of the healthy office market that Seattle in general and South Lake Union in particular have been experiencing over the past few years. Data provided by Marcus & Millichap Real Estate Investment Services indicates that national vacancy rates are on a slight downward trend, while Seattle’s vacancy numbers have taken a dive since 2009. The strengthening market is a positive indicator for the local office market, a trait investors clearly appreciate.
For more on the sale, turn to “Vulcan Sells Kilroy $170M, 321 KSF Office Property” on cpexecutive.com.
Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com