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5/26/22
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Swift Real Estate Partners recently acquired 425 Pontius, a four-story, 75k sf boutique office building in Seattle for $39.5 mil ($525/sf), as reported by RENTV in April. We recently learned that the deal was financed with a loan for $32.5 mil, which includes money for renovation of the property.
Photo: Soundview Photography |
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The building, located in Seattle’s South Lake Union submarket, includes surface parking, and two levels of underground parking. It was originally constructed in 1982 with a lobby renovation in 2018.
425 Pontius is 60% leased to tenants in the fields of biotech, healthcare, and professional services. Fred Hutch Cancer Research Center is the building’s largest tenant. The location is two minutes from Interstate 5 and four blocks from the Seattle Streetcar line, which connects riders to the Westlake transit hub in downtown Seattle for regional light rail and bus access.
Swift plans to reposition and transform creative office spaces and will renovate the exterior and make cosmetic upgrades to the lobby, elevators, and common areas.
Mike Walker, Brad Zampa and Jeff Henderson with CBRE Capital Markets’ Debt & Structured Finance group arranged the four-year, floating-rate loan with one extension option, through the San Francisco office of a West Coast-based bank. Tom Pehl and Charles Safley with CBRE’s Pacific Northwest-based capital markets team advised the seller, a local private partnership, in the sale of the property in March.
Despite inflation concerns and supply constraints, the Lake Union market has been thriving. Lake Union has the lowest total vacancy rate in downtown Seattle, according to CBRE, and has realized the most positive net leasing absorption in all of Seattle over the last year. New office construction in downtown Seattle totaled 1.4 msf, with 23% pre-leased, at the end of the first quarter.
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