SEATTLE — Takenaka Corp. has purchased Tilt49, a 290,573-square-foot office building in Seattle, for $268.5 million. The Class A building is located at 1812 Boren Ave. in the Denny Triangle area of the city.
Tilt49 is triple-net leased to Amazon through 2033. The newly constructed project includes 1,646 square feet of retail leased to Mighty-O Donuts.
NKF represented the seller, a joint venture between Principal Real Estate Investors and Touchstone. The firm’s Kevin Shannon, Ken White, Rob Hannan, Tim O’Keefe and Michael Moll executed the transaction.
The 11-story creative office property is nearby more than 100 restaurants, 3,000 hotel rooms, 28,000 urban residential units and public transit. The Denny Triangle submarket has experienced a 51 percent increase in average asking lease rates over the past three years, according to NKF.
Tilt49 sold for $924 per square foot. This is approximately about $40 per square foot more than the recently sold Midtown 21 office property, which is situated adjacent to Tilt49 and also leased to Amazon.
“The buyer [was sourced] via an ad hoc Asia/Pacific roadshow to four countries,” Shannon says. “As a result, we identified a strong buyer and achieved record-setting pricing for a Seattle office property. Takenaka is a first-time buyer in the Seattle market and plans a multi-generational holding period for this trophy asset.”
Amazon will begin to occupy Tilt49 early next year. The online retail giant leased 1.7 million square feet of new office space in the downtown Seattle area in 2017 alone, according to the Downtown Seattle Association.
Urban Renaissance Group has been retained to manage the project.
Takenaka Corp. is one of the largest architecture, engineering and construction firms in Japan. Headquartered in Osaka, Takenaka maintains 20 overseas offices and generates annual sales of about $9 billion.
— Nellie Day