KBS has snapped up The Plaza Buildings, two office towers encompassing approximately 490,000 square feet in Bellevue, Wash., for $186.5 million. The company acquired the suburban Seattle property from Beacon Capital Partners, relying on cash on hand and a $141 million acquisition financing package for payment.
With the assistance of CBRE Capital Markets, KBS obtained a $111 million floating rate loan from Wells Fargo and a $30 million mezzanine loan from Principal Capital Management. Both loans feature a three-year initial term with the option for two single-year extensions.
CBRE found no shortage of financing offers for the LEED Silver-certified buildings at 10800 & 10900 N.E. 8th St., which are known independently as Plaza Center and U.S. Bank Plaza.
"The lending community was attracted to the strong sponsorship, as well as the quality of the buildings and the desirable Seattle metro area location," Val Achtemeier, an executive vice president with CBRE, told Commercial Property Executive.
Located on a four-acre parcel spanning an entire city block in Bellevue's central business district, the Plaza Buildings were developed in 1978 and 1983, and most recently renovated in 2007. The 16-story Plaza Center features 345,600 square feet, while the 10-story U.S. Bank Plaza offers 144,500 square feet. Together, the buildings' occupancy level is presently 82 percent.
The trading of The Plaza Buildings marked the largest of the office property transactions, in terms of price, in metropolitan Seattle during the first quarter of 2014, according to a report by commercial real estate services firm Kidder Mathews. Sales volume in the area totaled $473.8 million, and included the trading of the 140,600-square-foot 401 Terry in South Lake Union for $106.1 million and the 186,000-square-foot World Trade Center East on Seattle's waterfront for $74.5 million.