Blackstone snaps up stakes in office buildings leased by Meta
[NEW YORK] Blackstone's real estate business purchased stakes in two office properties in Bellevue, Washington, that are leased by Meta Platforms.
Owner Shorenstein Investment Advisers sold an interest in two buildings, known as Blocks 5 and 6, to funds affiliated with Blackstone Real Estate, according to a statement on Wednesday (Jun 18).
Blackstone is buying a 40 per cent stake in each property and the pair of buildings is valued at a combined US$545 million, according to a source familiar with the matter who asked not to be identified, citing private details.
The New York-based asset manager has been hunting for more office deals, focusing on newer buildings with strong tenant demand. In January, Blackstone President Jon Gray said that the office market had 'bottomed'. Earlier this month, funds affiliated with Blackstone Real Estate purchased a stake in Manhattan's 1345 Avenue of the Americas.
Bellevue has benefited from the technology companies, such as Amazon.com and Salesforce, that have offices in the area. Its 19 per cent office vacancy rate in the central business district compares with 33 per cent for downtown Seattle, which was hit particularly hard by the pandemic, according to CBRE Group.
The Block 5 and 6 buildings, which each rise 11 storeys, are in the Spring District. Block 6, which opened in 2023, was recently subleased by software company Snowflake, which moved into the property in May.
Shorenstein and Wright Runstad & Co also struck a deal with Drawbridge Realty to sell Block 13, a nine-storey office building in the area, according to the statement. BLOOMBERG
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