Gemini Rosemont Commercial Real Estate has completed the recapitalization of One Twelfth @ Twelfth in downtown Bellevue, Wash., four years after acquiring the approximately 480,000-square-foot office campus. The office investment company brought in an affiliate of Beacon Capital Partners as a partner at the Class A property, creating a new ownership structure in a transaction valued at $240 million, according to King County records.
Designed by the architectural firm now known as MG2, One Twelfth made its debut in 2001 as a development project of Hines featuring three six-story structures carrying the addresses of 1100, 1110 and 1120 112th Ave. N.E. Gemini Rosemont had purchased the Seattle-area asset from Principal Global Investors for nearly $203 million in 2016 with a distinct strategy in mind: The institution of a capital improvement and leasing plan and an eventual recapitalization. Having completed much of the upgrades and recasting of the rent roll in 2019—Google inked an 80,000-square-foot lease in 2018—the company determined the timing was right for pursuing a new capital partner.
Beacon now owns an 80 percent interest in the joint venture the partners created as a holding entity for the One Twelfth. In conjunction with the recapitalization, Gemini Rosemont and Beacon refinanced the property to the tune of $204 million. The partners secured the five-year, floating-rate loan—which includes a $19 million facility for future leasing costs and capital expenses—through MetLife Investment Management.
Gemini Rosemont and Beacon’s new relationship extends beyond ownership of One Twelfth, as the companies plan to jointly pursue other opportunities. The partners have not announced further details on future team endeavors; however, Gemini Rosemont has its eyes firmly set on tech-centric coastal and gateway markets, as the company disclosed when it announced the relocation of its headquarters to Los Angeles in April 2019. Gemini Rosemont plans to use proceeds from the One Twelfth recapitalization to invest in Class A assets in the aforementioned markets.