LOS ANGELES – April 7, 2015 – A fund sponsored by CBRE Global Investors has acquired Metropolitan Park East and West, a 708,283 square foot, two-building Class A office portfolio, located in Seattle’s South Lake Union submarket. The combined properties are 93.6 percent leased to a diverse mix of tenants.
The 20-floor Metropolitan Park East, which is located at 1730 Minor Avenue, includes 370,849 square feet. The 18-floor Metropolitan Park West, which is located at 1100 Olive Way, is 337,434 square feet. The portfolio is located at the convergence of the South Lake Union submarket, an “Innovation District” with a significant creative and technology office presence; the traditional Central Business District; and the healthcare-oriented Capitol Hill submarkets. A high concentration of technology and healthcare users has spurred office, retail, residential and hotel development adjacent to the property.
Metropolitan Park amenities include restaurants, a conference center, electric vehicle charging stations, bike storage and locker rooms. The property also offers attractive views, balcony decks on select floors, and 867 parking spaces. The investment fits with the team’s strategy to reposition office buildings within Innovation Districts that appeal to a new way of working. The rectangular design of the buildings and flexible 20,000 square foot floor plates allow tenants looking for a contemporary working environment to develop open and collaborative space for their employees.
The strategy is to lease rollover space by implementing capital improvements, including the CBRE Global Investors’ proprietary 5-Star program service and amenity program, to enhance the appeal of the property to attract both traditional and technology users in a very active leasing market. The 5-Star program will enhance the work environment for tenants by offering high-quality and service-oriented property management, concierge services and a video-linked conference center.
“The South Lake Union submarket has experienced tremendous growth as a result of the influx of technology and biotechnology tenants,” said Vance Maddocks of CBRE Global Investors. “Since 2010, the submarket has posted 1.0 million square feet of net absorption, and vacancy has decreased from 14.7 percent to 8.0 percent. Metropolitan Park has already proven its ability to attract a broad range of traditional and creative/tech tenants, and in a market where few owners are offering similar amenities and service, we believe 5-star will be a differentiator to further attract new tenants and improve tenant retention and satisfaction.”
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $90.6 billion in assets under management* as of December 31, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment firm for the benefit of its investors. CBRE Group, Inc. has more than 52,000 employees in more than 370 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.