Hines Global REIT Inc. , a publicly registered, non-traded real estate investment trust sponsored by Hines, has completed the sale of KOMO Plaza in Seattle to GI TC Seattle, LLC.
The net contract sales price for KOMO Plaza is expected to be approximately $276 million in aggregate, exclusive of transaction costs and closing prorations. The property was acquired by Hines Global REIT on December 15, 2011 for a purchase price of $160 million.
Formerly known as Fisher Plaza, KOMO Plaza is a state-of-the-art, multi-tenant data center facility. The property is located in an emerging office submarket in downtown Seattle, a prime location for its data center and broadcast tenants.
Sherri Schugart, president and CEO of Hines Global REIT, said, “There were many factors that made KOMO Plaza an attractive asset for Hines Global REIT, among them its central location, high-quality infrastructure, excellent connectivity, best-in-class construction, strong tenant roster and substantial tenant infrastructure investment. The property has performed extremely well for shareholders, producing solid income and appreciating substantially since its acquisition. Accordingly, management and the board determined this to be an opportune time to lock in gains and maximize the return on our investment.”
Hines Senior Managing Director Ty Bennion noted, “KOMO Plaza borders South Lake Union and the Queen Anne Submarket, an area that has seen significant growth from Amazon, University of Washington, Biotech and other technology users in recent years. The property’s convenient access and technological advantages helped it to be regarded as a premier data center asset in the Pacific Northwest, and ultimately as a desirable asset for the purchaser.”
In March 2016, the company disclosed that it was evaluating various strategic alternatives. In May, they further disclosed that the company hired Lazard Ltd. To advise on the sale of it portfolio. Since that announcement, the company has sold two properties, including KOMO Plaza.
Hines Global REIT, which commenced its initial public offering in August 2009, raised $2.9 billion in investor equity in its two public offerings, the last of which closed in April 2014. The company’s $5 billion portfolio is comprised of 41 properties located in the United States and abroad.