Brookfield Asset Management Real Estate Fund announced it had purchased the recently completed Block 16 office building in Bellevue, Wash., for $365 million. The property was sold by a group that includes Wright Runstad & Company, Shorenstein Properties and several institutional investors collaborating with J.P. Morgan Asset Management.
Block 16 spans 343,528 square feet of Bellevue office space across 11 floors and is currently fully leased to Facebook. The property is situated in Bellevue’s Spring District, a neighborhood that is currently being developed by a joint venture between Wright Runstad and Shorenstein Properties.
Upon completion, the 16-block, 36-acre Spring District development will include a total of 24 buildings with a mixture of residential, commercial and retail space. The neighborhood will be connected to the rest of the Seattle metro area through the East Link Extension light rail line.
“The Spring District is a leading example of a sustainable community that provides a true balance of live, work and play,” said Andrew Friedman of Shorenstein Properties. “This sale underscores just how desirable this type of asset has become for global investors.”
According to Wright Runstad’s Greg Johnson, the Spring District will see another two major completions that will add a further 530,000 square feet of office space in Seattle by 2023.
The property is one of Facebook’s many operations in the Spring District. Earlier this year, the social media giant directly purchased the unused, 400,000-square-foot headquarters of sporting goods outlet REI for $368 million. Facebook also leases three other buildings in the area.
In addition to Facebook, another major tenant in the Spring District is the Global Innovation Exchange, an educational institute formed through a partnership between the University of Washington, Beijing’s Tsinghua University and Microsoft.
Block 16’s new owner, Brookfield, is an alternative asset manager headquartered in Toronto, Canada, that manages assets totaling approximately $550 billion. The company also invests in infrastructure, renewable power and private equity.