The Port of Seattle has completed its $120 million acquisition of a three-building office complex in SeaTac, the sellers announced Tuesday. The deal follows the port commission’s approval of the purchase last fall.
The sellers are Seattle-based Urban Renaissance Group and investment partner PCCP of San Francisco.
The 548,704-square-foot International Place property sits on a 17.7-acre site at 18000 International Blvd.
URG acquired the buildings in 2015 with Iron Point Partners for $47.1 million, according to King County sales records, and the buildings were modernized after the acquisition. The property then underwent a $30.1 million recapitalization in 2019, during which Iron Point Partners sold its stake to the new URG-PCCP partnership.
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Additional improvements to the property were made after the recapitalization, including renovations to the lower plaza, common corridor and elevator lobby.
“We’re incredibly proud of the transformation we believe we have achieved at International Place,” URG CEO Matthew Simo said in a news release. “When we first acquired the property, we recognized the immense potential. Through strategic investments and a commitment to modernizing the campus, we believe we were able to elevate it to one of the premier office destinations in the south-end submarket. This wouldn’t have been possible without the strong alignment and partnership with PCCP.”
Heartland of Seattle was an adviser to the port on the transaction.
The complex was constructed between 1974 and 1980 and includes two 12-story towers of about equal size totaling 440,000 square feet. The third building, a four-story mid-rise, is around 110,000 square feet.
The sale represents a successful culmination of the owners’ vision and a testament to the strong demand for well-located office space, Simo said.
The complex is 75% occupied. Tenants include Alaska Airlines, Lynden Inc., the Transportation Security Administration, the Port of Seattle and 13 Coins restaurant.
URG will continue to operate the complex.
The port has leased space in the office park since 2015 and currently has 47,000 square feet in one of the buildings.
The port approved the purchase for up to $122 million in October and the agency entered into a nonbinding sales agreement with the owners while it conducted due diligence. The final sales price was $2 million less than originally anticipated.
“We have a lot of opportunities in this space to support our airline partners and to support ourselves with operational needs going forward,” Kyra Lise, the port’s director of real estate, said at a presentation to the port commission last fall.
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Correction/Clarification
The story has been updated to reflect that the final sales price was $2 million less than the $122 million amount the port authorized in October. It also clarifies that Heartland was an adviser to the port, not its representative in the deal.