720 3rd Avenue ("The Pacific Building")
Brickman acquired the fee-simple interest in Pacific Building for $50.35 million ($378 per square foot) in October 2014. The asset is a 23-story office building totaling 133,190 square feet and six levels of structured parking located on floors 2 – 7 of the Property, providing 216 spaces and offering 1.6 stalls per 1,000 rentable square feet, significantly higher than most parking ratios in Downtown Seattle. The Property was built in 1971, partially renovated from 2008 to 2014 and is located at 720 3rd Avenue Seattle, WA. Pacific Building is located in the heart of Seattle’s central business district and strategically located next to numerous transportation options including ferry system, light rail, bus and major roadways. Downtown Seattle continues to see an improving creative office market with significant positive absorption recently due to the employee base’s desire to work in an urban environment with rich amenities and a live, work, play atmosphere.
Property type: Office
Investment type: Equity
Size: 133,190 SF
Investment date: October 2014
Pacific Building is located in Downtown Seattle, a rapidly emerging and expanding market. The properties’ submarket has been in high demand within the Puget Sound leasing market demonstrating outsized leasing velocity due to its reasonable asking rents and improving amenities.
Brickman acquired the Property at an attractive stabilized cost basis of $50.4 million ($378 per square foot), however the parking garage at the building had an estimated value at the time of closing of approximately $11.9 million, netting down Brickman’s basis of the office space to $289 per square foot. The fully stabilized cost basis of the property represents a 10-15% discount to the average stabilized office basis of the comparable set.