Newmark Announces Sale of Lakefront Blocks
Newmark has successfully sold the 635,000-square-foot, Google-anchored Lakefront Blocks in Seattle for $802 million, averaging over $1,260 per square foot. The transaction, excluding two apartment towers, reflects strong market interest and investor confidence in high-quality assets. Deka Immobilien was the winning bidder, emphasizing the investment's long-term sustainable value attributed to its prime lakefront location and design features. The sale was announced following a competitive marketing process that began in September 2021.
- Completed the sale of Lakefront Blocks for $802 million, indicating strong demand for quality real estate.
- Transaction price of over $1,260 per square foot reflects high asset value in a competitive market.
- None.
SEATTLE, Feb. 23, 2022 /PRNewswire/ -- Newmark and Vulcan Real Estate today announced the sale of the 635,000-square-foot, Google-anchored Lakefront Blocks in Seattle's South Lake Union neighborhood. The
"The Lakefront Blocks, with its world-class views, sustainable design features and strong credit tenancy is truly one of South Lake Union's trophy assets," said Ada M. Healey, Chief Real Estate Officer for Vulcan. "The strong interest we received in the property is testament to the enduring quality of this institutional-grade investment."
The property was offered for sale in September 2021 with each block marketed independently. The properties generated strong interest from the investment market, with Deka Immobilien coming in as the winning bidder for both.
"This project, in my opinion, was the best core office offering on the West Coast in 2021," said Kevin Shannon, Co-Head of U.S. Capital Markets at Newmark. "The combination of credit, asset quality, ESG, South Lake Union submarket and lakefront location made this a truly generational opportunity, a factor that was reflected in the intense competition for the asset."
Newmark's Shannon, Vice Chairman Nick Kucha, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Michael Moll brokered the sale.
Completed in 2019, the Lakefront Blocks were designed by Graphite Design Group and include two full city blocks, each developed with two 6-story office buildings. The buildings on the west block (Block 31) are separated by a pedestrian woonerf at the ground level and are connected by a skybridge above. The north building includes retailers Tapster, a self-serve tasting bar, and 203 Degrees Fahrenheit coffeehouse. The east block (Block 25) buildings are separated by a north-south public alley. The property enjoys expansive views of Lake Union and the Seattle city skyline and features ample open space, attractive landscaping and pedestrian- and cyclist-friendly amenities.
"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
About Vulcan Real Estate
Seattle-based Vulcan Real Estate directs all real-estate investment activities for Vulcan LLC, a Paul G. Allen Estate affiliate. Through strategic acquisitions and innovative development, Vulcan Real Estate has created a diversified portfolio of high-performing quality assets including office, life sciences, residential and mixed-use projects.
The company's integrated team of real estate professionals offers a full range of development and portfolio management services from site selection and urban planning to build-to-suit construction, leasing, financing, and asset repositioning. Its real estate model is based on quality, sustainable development that builds new value across the entire community.
Since 2000, Vulcan Real Estate has delivered
About Deka
DekaBank is the securities services provider of the German Savings Banks Finance Group (Sparkassen-Finanzgruppe). Together with its subsidiaries it forms Deka Group. With total customer assets of more than EUR 378 billion (as at 30/09/2021) and more than 5 million securities accounts, DekaBank is one of the largest securities services providers and real estate asset managers in Germany. DekaBank is a wholly owned subsidiary of the German Sparkasse savings banks and forms an integral part of the Sparkassen-Finanzgruppe.
The Deka Group's global real estate expertise is pooled in its Real Estate Division. The management companies, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH provide management and support for around EUR 47 billion in real estate assets (as of December 31, 2021).
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
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SOURCE Newmark Group, Inc.
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