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News release

SEATTLE

Location, Demand for Data Centers Drive Sale of Seattle Office Plaza

JLL completes $276 million sale of KOMO Plaza


SEATTLE, Jan. 18, 2017 – Seattle's data centers and tech-friendly office space continue to beckon investors seeking value as a growing media and technology contingent continue to fuel demand. On behalf of Hines Global REIT, JLL's Capital Markets experts announced the firm completed the sale of KOMO Plaza, a 293,727-square-foot, Class A office and data center asset in Seattle. GI Partners purchased the two-building plaza for $276 million.

Managing Directors Lori Hill, Michael Hochanadel and Conan Lee led the JLL team on the sale. 

"This was a unique property in that it's one of just three key telecommunications carrier hotels in the Northwest and one of just two purpose-built telecommunications centers in Seattle," said Hochanadel. "We continue to see very high demand for data centers in the region as the tech and media sectors work to expand their footprints." 

Added Lee, "This region has always attracted data center tenants because of the technology tenant base, Seattle's robust telecom infrastructure grid and the low latency to Asia. However, demand has recently surged to support the need for content delivery and new telecommunications services." 

Hines Senior Managing Director Ty Bennion noted, "The JLL team did an outstanding job selling this unique property for us within a tight timeframe. KOMO Plaza's mixed-use profile that includes television studio, retail and data center space made it an attractive but complicated property to market. We are very pleased with the outstanding results that JLL delivered for us." 

KOMO Plaza is located directly across the street from the Seattle Center, at the cross section of the South Lake Union, Belltown and Lower Queen Anne submarkets, in one of the most desirable areas in downtown Seattle. The data center portion of the plaza is self-managed and carrier-neutral, and approximately 15 telecommunications and Internet service providers have fiber in its Meet-Me Room. The plaza also includes a ground-floor retail portion.  

"KOMO Plaza's top-tier design and irreplaceable location, combined with a strong mix of tenant credits made this a highly sought-after investment opportunity," said Hill. "Vacancy in Seattle's office market remains below 10 percent, and we anticipate demand for this type of asset to remain very high."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2015 alone, JLL Capital Markets completed $140 billion in investment sale and debt and equity transactions globally. The firm's Capital Markets team comprises more than 2,000 specialists, operating all over the globe. 

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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate.  JLL is a Fortune 500 company with, as of December 31, 2015, revenue of $6.0 billion and fee revenue of $5.2 billion, more than 280 corporate offices, operations in over 80 countries and a global workforce of more than 70,000.  On behalf of its clients, the company provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. As of September 30, 2016, its investment management business, LaSalle Investment Management, has $59.7 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.