The real estate arm of Caisse de dépôt et placement du Québec, Ivanhoé Cambridge Inc., bought two contiguous office properties in downtown Seattle for $280 million with partner Callahan Capital Properties.
The two companies bought 1111 Third, a 34-floor, 572,500 square-foot office building, as well as Second & Spring, which is five-storeys high and occupies 135,000 square feet, the two firms announced on Monday. They did not disclose who the sellers were.
Ivanhoé has been expanding its US real estate investments. Last week, it agreed to purchase a property at 1095 Avenue of the Americas (6th Avenue) in Manhattan, New York City – a 42-storey office block on Bryant Park from Blackstone group LP for $2.25 billion.
According to Ivanhoé, 1111 Third is a Class-A office building that has recently undergone a complete overhaul, including an upgraded storefront and lobby, new building systems and an expansive new fitness center.
Tim Callahan, Chief Executive Officer of Callahan Capital Properties, said:
“As one of the top-performing economies in the country, we are very optimistic about the continued strength and outlook for Seattle. These properties exemplify our focus on investing in markets with compelling long-term growth prospects and in properties with opportunities to enhance value.” Mr. Callahan added: “We are very pleased with the success we have achieved to date in growing our platform with Ivanhoé Cambridge to 8.1 million ft2 and will continue to capitalize on the momentum to build a leading office platform in major gateway markets across the U.S.”
The two companies bought the 5-storey building in the front of the photo and the taller one behind it. (Photo: Ivanhoé Cambridge)
The two companies have bought seven properties together so far. This latest acquisition brings the total value of their joint purchases of US office real estate to $2.7 billion.
Ivanhoé Cambridge’s Executive Vice President of Investments in the United States, Adam Adamakakis, said:
“1111 Third and Second & Spring are terrific properties that complement our existing ownership stakes in the nearby 999 Third and U.S. Bank Centre buildings. With a critical mass of 2.6 million ft2, or approximately 13% of Seattle’s Class A office CBD market, we are well positioned to benefit from the ongoing growth of the Seattle economy and its dynamic underlying industries.”
