Bank of America has provided a $39 million loan to a joint venture between Urban Renaissance Group (URG) and Iron Point Partners for the acquisition of the SeaTac Office Center in the SeaTac, Washington.
The floating-rate bridge loan backs the acquisition and will help with renovation costs to the 550,000 sq ft office complex.
The property is made up of three buildings, at 17900, 17930 and 18000 Pacific Highway South, 15 miles south of Seattle and adjacent to SeaTac International Airport.
Built between 1974 and 1980, two buildings are 12 stories with 210,000 sq ft and 225,000 sq ft and the other is four stories with 115,000 sq ft.
The complex is 62 percent leased to travel, aviation, government, international trade and air-freight tenants. URG believes there is significant upside potential through the renovations and leasing up of the remaining space.
“With core downtown markets experiencing increased rental rates and decreased vacancies, we expect this location will experience significant future demand, especially with Sea-Tac airport’s anticipated growth of 40 percent over the next 10 years,” CEO Patrick Callahan said in a statement.
Joint venture partner Iron Point Partners manages a series of real estate private equity funds formed to invest in opportunistic real estate transactions throughout the US and North America. The firm has raised more than $2 billion of capital through those funds.