Brookfield Premier to Land $210M for Seattle Office Buildings
Three banks will co-originate the refinancing.
Image courtesy of Yardi Matrix
Brookfield Premier Real Estate Partners is set to secure a $210 million refinancing loan for Block 16 and Block 24, two Class A office buildings in Bellevue, Wash. Goldman Sachs, Bank of Montreal and NWL Co. are expected to co-originate the non-recourse note, in a transaction scheduled to close on August 27, according to a KBRA pre-sale report.
The fixed-rate loan matures in September 2033 and includes an initial four-year anticipated repayment date. Additionally, the mortgage loan is interest-only through the first two years. Proceeds will retire an existing debt of $205 million.
Brookfield Premier purchased Block 16 in 2020 and acquired Block 24 a year later, for a combined total of $565 million.
The office buildings at Spring District
Block 16 and Block 24 are two adjacent properties, part of the 36-acre Spring District, a master-planned neighborhood redevelopment situated on a former industrial site. Upon completion, the mixed-use project is slated to consist of more than 4 million square feet of office, retail, restaurant and residential space.
The pair of LEED-certified office buildings came online in 2019 and 2020, respectively, and are fully leased to Meta Platforms Inc. The tech company invested $59.2 million in the buildout of the first property.
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The assets rise 11 and 10 stories, totaling 542,680 square feet of office space. Shared amenities include bicycle storage, kitchen, dining hall and a parking garage with 1,178 spots. Meta’s lease runs through 2033, with a single five-year renewal option.
Located at 1288 123rd Ave. NE and 12355 NE District Way, respectively, Block 16 and Block 24 are 11 miles east of downtown Seattle. Major thoroughfares in the area include Interstate 405 and Washington State Route 520.
Spring District is among the most significant construction projects in Seattle, with several buildings already completed. Construction on the $2.3 billion master-planned neighborhood began in 2013 through the joint venture between developers Wright Runstad & Co. and Shorenstein Properties. While the residential buildings are already open, the ownership still plans to deliver 1.3 million square feet of office and retail space. Full buildout is anticipated for 2028.
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