Dealmaker: Newly Delivered Seattle Office Trades for $330M

Union Investment Real Estate, Hamburg, Germany, acquired the 21-story Midtown21 office building in Seattle for $330 million. 

Trammell Crow Co., Dallas, developed the Class A property with joint venture partner Metropolitan Life Insurance Co., New York. It delivered late last year.

“When the project was conceived, it was designed to attract both technology and traditional office users, given its location at the apex of the traditional central business district and technology core of Seattle,” said Mike Nelson, Principal with Trammell Crow’s Seattle business unit.

Located on Stewart Street, the primary arterial into Seattle from southbound Interstate 5 and eastbound SR 520, Midtown 21 occupies the Denny Triangle between Seattle’s central business district and the South Lake Union submarket. 

The Registry Puget Sound reported that Metzler Real Estate, Seattle, brokered the sale at a low-four percent cap rate.

Though Midtown 21 was designed to be a multi-tenant property,, Seattle, leases the entire 365,000-square-foot property with a six-story underground parking lot. 

Union Investment will transfer Midtown21 will to its UniImmo: Europa fund, an open-ended real estate fund that already owns two other Seattle office buildings and the nearby Hilton Garden Inn hotel, which it acquired in March.