A partnership run by American Realty Advisors bought Vulcan’s 2201 Westlake in the Denny Triangle neighborhood Tuesday for about $251 million.
A partnership run by American Realty Advisors bought Vulcan’s 2201 Westlake on Tuesday for about $251 million, the latest in a series of sales by the Seattle-based developer, records show.
The 12-story office building at the corner of Westlake Avenue and Denny Way in Seattle was built in 2009 and is fully leased to Amazon.com and global health organization PATH, officials said. The building’s ground floor is leased to retailers West Elm, Bang & Olufsen, Einstein Bagels and Ann Sacks Tile & Stone.
At just over $791 a square foot, the sale sets a record for the highest price paid for a Seattle-area office building, brokers said, topping the $745-a-square-foot paid in 2013 by Munich-based GLL Real Estate Partners for 202 Westlake.
It’s no accident the record sales of both buildings have Amazon.com as the anchor tenant or that they’re both in or near the South Lake Union neighborhood, a former industrial and warehouse district that’s become a technology and biomedical district.
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“[The sale price] reflects the strength of South Lake Union, the quality of the project and the fact that Seattle is considered one of the top markets in the country for institutional investment,” said Stuart Williams, a managing director at JLL’s Seattle office who was not involved in the transaction.
Vulcan has been disposing of its commercial property in the Seattle area with a view to reinvesting the proceeds in new ventures. At the end of 2012, it sold Amazon.com its South Lake Union campus for just over $1.15 billion.
Since then, Vulcan has sold 11 office and apartment projects locally for a total of about $1.28 billion, including Tuesday’s sale of 2201 Westlake.
American Realty Advisors, based in Glendale, Calif., is an investment manager for institutional investors, with nearly $7 billion in assets under management.
“Opportunities to acquire a newly constructed building with high-quality tenants at a ‘Main and Main’ location are rare,” Drew Hess, senior director of American’s investment group, said in a statement.
Amazon.com occupies more than half the 317,000- square-foot property, officials said. American Realty purchased just the office and retail parts of the building; it does not include the 135-unit Enso Condominiums that are part of the mixed-use building.
Vulcan still has plenty of property in the neighborhood. A Vulcan spokeswoman said the company has 2.2 million square feet of office and biotech buildings, plus 20 acres of land for future development of about 4 million square feet.