Pacific Place Shopping Center in Seattle, WA.
The Puget Sound Business Journal reports that Madison Marquette and some other investors have now purchased the Pacific Place shopping mall in Seattle for $271 Million — and, that’s likely to be a record price for a shopping center in Seattle!
Pacific Place apparently hosts over six million visitors yearly, and it is 90% leased. Their tenants include a number of upscale retailers such as Barney’s NY, Michael Kors, and Tiffany & Company, along with original tenants like Williams Sonoma, Helly Hansen, Il Fornaio and an AMC cinema.
The Puget Sound article reports:
“A Seattle company, Pine Street Group, teamed up with local investors, such as the Behnke and Howard S. Wright families, Howard Schultz of Starbucks, Gary Waterman and John McCaw, to develop the five-story mall in the late 1990s. It cost $175 million to build.”
By my back-of-the-napkin calculation, that makes the recent $271 million selling price come to a whopping 51% capital gains in about 16 years since it opened in 1998!
With recent examples like this, it appears that not only is the economy going strong, but Seattle’s Commercial Real Estate Sector is also extremely healthy right now.
Mike Meisenbach 