November 14, 2019— Newmark Knight Frank (NKF) has completed the sale of Arbor Blocks East and West, a Class A, 388,072-square-foot office campus located at 300 and 333 8th Avenue North, in Seattle, WA. Both newly constructed buildings are leased to Facebook, Inc. on a long-term basis.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Senior Managing Director Mike Moll, Executive Managing Directors Rob Hannan, Ken White, Alex Foshay, and Director Bill Delacy, in cooperation with NKF local expert Executive Managing Director Jesse Ottele, represented the seller, Seattle-based Vulcan Real Estate.
Situated in the south Lake Union submarket of Seattle, Arbor Blocks was delivered in 2018 and 2019 and consists of two six-story, state-of-the-art buildings with multi-level subterranean parking. The East building totals 197,274 square feet, and the West building is 190,798 square feet. The campus includes a pedestrian- and bicycle-oriented “woonerf” (“living street”) along 8th Avenue North that promotes outdoor gatherings with public seating areas, specialty paving, landscaping, and public art.
“Once again, Vulcan has developed a trophy office product that has set an all-time record price per square foot for Seattle, which happens frequently in healthy coastal markets that possess strong rent growth fundamentals,” said Shannon.
According to NKF’s third-quarter 2019 market report, the Lake Union office submarket has the lowest vacancy rate of all of eight of downtown Seattle’s submarkets at 2.8 percent. Year-to-date, it has seen just over 1.11 million square feet of net absorption, and currently has approximately 2.9 million square feet under construction.
“The ability to acquire a trophy bond-like investment in south Lake Union anchored by Facebook credit is incredibly rare,” said Moll.
Arbor Blocks is located near the 5 Freeway, Highway 99, the Seattle Streetcar, the city’s primary bicycle commuter corridor along Dexter Avenue, and numerous regional buses and features a transit score of 94 and a walk score of 97.