German investment firm Deka Immobilien has acquired the Google-anchored Lakefront Blocks in Seattle’s South Lake Union neighborhood from Newmark and Vulcan Real Estate for $802 million.
The sale did not include the two apartment towers (Helm and Mera) located above the office buildings.
Completed in 2019, the Lakefront Blocks include two full city blocks, Block 25 and Block 31, each developed with two 6-story office buildings.
Block 25 comprises more than 30,000 square meters of rentable space and 345 parking spaces and is almost fully leased to Google LLC on a long-term basis. Google is also the main tenant in Block 31 with a total of around 29,000 sqm and 274 parking spaces for the next few years.
“This opportunity reflects the goal of our Real Estate Funds to pursue high-quality, long-term investments with best-in-class tenants,” said Driss Oualkadi, Deka Immobilien U.S.A.’s President and Head of Acquisition & Sales North and South America.
“We believe the Lakefront Blocks present long-term sustainable value given their exceptional lakefront location, interstate access and the quality and design features. Our significant investment of approximately $800 million exemplifies Deka Immobilien’s strategy to increase its exposure to the most attractive global cities. Given its large tech industry and highly-educated workforce, Seattle continues to be one of the most desirable Gateway Cities in the U.S,” he added.
Lakefront Blocks 25 & 31 are located north of the South Lake Union submarket, which borders Seattle’s Central Business District. They are located directly on the southern shore of Lake Union and have excellent transport links. South Lake Union is a thriving location that is home to a number of significant technology and biotech companies. The district is considered an internationally renowned role model in terms of innovation.
The buildings are certified with the Leadership in Energy and Environmental Design (LEED) standard Gold for “Core & Shell” and the “Salmon Safe” seal, which evaluates the sustainable use of water and land.
The rental areas were developed for the tech company Google according to the latest standards and symbolize the New Work concept with high flexibility, the latest technology in the equipment and numerous creative work and social areas.
