Wednesday, October 4, 2006 - Page updated at 12:00 AM
Record price of $575/square foot paid for Bellevue towers
Seattle Times business reporter


PICTOMETRY
Civica Office Commons is at the corner of 108th Avenue Northeast and Northeast Second Street in downtown Bellevue.
Civica Office Commons
![]()
![]()
Year built: 2001
Number of floors: Eight in its north tower, six in its south tower.
Square feet: 305,835
Tenants include: Microsoft, Morgan Stanley, Anheuser-Busch
Amenities: Fitness room, library, concierge service, valet parking
Source: Civica
Less than two years after paying a record amount for a downtown Bellevue office complex, New York-based Investcorp International has turned around and sold it — this time, for yet another record amount, Seattle-area brokers said Tuesday.
Investcorp sold Civica Office Commons for $175.7 million, or $575 a square foot, in a deal finalized last week, beating the $462 a square foot it paid in March 2005, brokers said.
The new owner: New York-based real-estate-investment company Brickman Associates.
"It's mind-boggling," said John Miller, senior managing director for Cushman & Wakefield's Northwest region. "They must anticipate that rents are going to skyrocket over the next few years."
In downtown Bellevue, only 5.4 percent of office space is vacant, down from 29 percent in 2003. And the average annual asking rent is up to $28.11 a square foot from $24.16 a year ago, according to brokerage Cushman & Wakefield.
Brokers said the Civica deal offers more proof that the Seattle area is capturing the attention of large, national real-estate-investment companies, primarily because of its strong job growth.
Investcorp's deal for Civica 18 months ago, with Bellevue-based Schnitzer Northwest as the seller, marked the most ever paid per square foot of office space in the Seattle area.
Now, Brickman has set a new record, surprising even those in the brokerage community who've been talking about a trend toward bigger and bigger deals.
Officials with Investcorp International and Brickman Associates could not be reached for comment.
Miller said he's bullish on the Bellevue market but noted about 2.6 million square feet of office space is being built or planned in the city, signaling more competition for properties such as Civica.
"You wonder how stable the asset is," Miller said.
Civica, at 108th Avenue Northeast and Northeast Second Street, has two midrise office towers joined by a glass atrium featuring a granite fireplace, library and fountain. At 305,835 square feet, it's fully occupied, with tenants paying on average about $31 a square foot, brokers said.
Built in 2001, Civica boasts on its Web site that it redefines the phrase "smart use of space" with a design aimed at helping businesses enhance employee retention and productivity. Amenities include a concierge service, valet parking, an exercise room and dry-cleaning pickup.
"This is the kind of building where people sit and say, 'This feels right,' " said Don Fosseen, a broker at CB Richard Ellis in Seattle. "It's well-designed."
Tenants include such big names as Microsoft, Morgan Stanley and Anheuser-Busch.
Fosseen said the record price makes sense, given other recent deals in the Seattle area.
In June, New York-based Tishman Speyer paid $560 a square foot for Market Place I and II in downtown Seattle; in April, Metropolitan Park North, near downtown Seattle, went for $475 a square foot, Fosseen said.
Brickman's Web site says it has invested more than $1.75 billion in real estate throughout the United States since its founding in 1992.
Its recent purchases include an office and retail building near Boston's Financial District and the St. Regis Hotel in Washington, D.C.
Brickman also owns buildings in Los Angeles, New York and Detroit and Durham, N.C.
Amy Martinez: 206-464-2923 or amartinez@seattletimes.com
Copyright © 2006 The Seattle Times Company
![]()

nwjobs

Post a comment

Michelle Goodman blogs about work/life balance.
How to tell your office you're gravely ill
Post a comment
nwautos

Choosing a new car? Weigh the impact of your choice on your wallet and on the planet.
Post a comment
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Craigslist adoption ad: A plea by young mother-to-be? A scam?
- Tugboat sinks at Seattle waterfront pier
- Child-support error costs nearly $21,000
- Italian lead prosecutor argues Knox motive was hatred
- Italian prosecutors request life sentence for UW student
- Man shot in chest on E. Union Street in Capitol Hill
- Chase shrugs off loss of CD investors
- Washington state wines make annual best-of list
- Vikings easily beat the Seahawks
- Senate vote clears hurdle
239 - Vikings easily beat the Seahawks
133 - Child-support error costs nearly $21,000
123 - Palin excitement builds in Tri-Cities
123 - Tight Senate vote launches health care over hurdle
122 - Cutting through breast-cancer confusion
90 - Historic health care bill clears Senate hurdle
74 - Game thread
70 - New York terror trials will restore faith in rule of law
62 - Chase shrugs off loss of CD investors
53
- Washington state wines make annual best-of list
- Nonprofits get creative using Twitter and Facebook to make donation easier
- It's possible to recover a life lost to hoarding
- Lynnwood is reinventing itself — again
- Great places to cross-country ski for free (or almost) in the Methow
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Child-support error costs nearly $21,000
- Recipes: Sesame Pork Roast, Sour Cream Mashed Potatoes, Gingerbread with Lemon Sauce and more
- Banff: powder, peaks & purity
- Chase shrugs off loss of CD investors






