The complex comprises around 27,616 m² of rental space spread over two buildings.
Union Investment acquired the office complex, which comprises around 27,616 m² of rental space spread over two buildings in Seattle's northern business district, for UniImmo: Europa in 2005. The fund’s investment focus is on Europe, which currently accounts for some 80% of its holdings. To diversify the property assets, investments are also made in America and Asia and currently make up 20% of the fund.
"Investing in Seattle has paid off for our Europa fund – by generating stable rental income during the seven-year holding period and now achieving a good sale price," says Volker Noack, Member of the Management Board of Hamburg-based Union Investment Real Estate GmbH.
"Active asset management enabled us to create the right conditions for a successful sale in a booming market."
At the time of sale, the Fremont Lake Union Center was 99.4% let. Occupying 61% of the space, Adobe Systems is by far the largest tenant in the building. The lease with the US software company was recently extended by a further 10 years.
"Given the high occupancy rate and long-term commitment of the anchor tenant, this was the perfect time to sell in one of the most sought-after investment locations in the US," says Noack. Union Investment was advised on the transaction by Metzler North America.
UniImmo: Europa has five other properties in the US with a total value of around €900 million, spread across New York, Washington D.C., Chicago, San Diego and Seattle. This year, Union Investment again plans to take advantage of targeted investment opportunities for the fund in North America.
"Our goal is to reinvest the sale proceeds in the US soon," says Volker Noack.
Source: Union Investment Real Estate GmbH