Instead of sending out a typical closing announcement, we decided to share the story of a property we sold last week because the transaction was somewhat unique. The deal started earlier this year when we were working with a client looking to place equity to complete a 1031 exchange. We reached out to a client that has owned retail and office investment properties and asked if he would be willing to sell anything. One of his assets was a medical office condo in the Nordstrom Medical Tower on First Hill in Seattle. He indicated the timing was right and for the right price he would sell the property.
It should be noted, many years ago our client placed the property into a charitable remainder trust. By doing this, all of the proceeds of a sale are given to charity. Our client is blind and an active supporter the Foundation Fighting Blindness. The Foundation is the sole beneficiary of his charitable remainder trust.
Now a little bit about the investment. It is a full floor of the Nordstrom Medical Tower, which is connected to Swedish Hospital by a skybridge. The site is one of the best medical office locations available in Seattle. The tenant recently signed a 10 year extension to their lease which significantly raised the value of the property. In fact, a major medical REIT had submitted an unsolicited offer on the property this year for just over $6 million before the new lease was signed.
We sold the property for $8.5 million, which was a 5.54% cap. 100% of the Seller’s net proceeds are going to the Foundation Fighting Blindness. As brokers we also participated in giving a significant portion of the commission to the Foundation Fighting Blindness. It was a great way to end the year and support such an important cause.