RCA in the commercial property press:

Investors Nab (Relatively) High-Yield Commercial Property in Bellevue

Puget Sound Business Journal reports: The Puget Sound Business Journal recently chronicled the sale of the Bravern Office Commons to exemplify “a national trend where Class A office buildings fully leased to blue chip tenants continue to fetch handsome prices despite the recession.” Des Moines-based Principal Real Estate Investors recently closed on the Bravern transaction, which included the complex’s two high-rise office towers and parking garage, for $410 million. The two office towers are currently fully leased by Microsoft.

Single-tenant assets, with high-quality tenants such as Microsoft, have allowed some buildings to sell “for annual capitalization rates not seen since the boom – some recent cap rates have been equivalent to a return of 6 percent a year.” Though that is below average historical yields, Real Capital Analytics’ managing director, Dan Fasulo, explained buyer’s logic behind acquiring property such as Bravern: “Where else can you get 6 percent a year for a safe investment? The stock market has been volatile, corporate bonds have gotten very expensive and gold is at an all-time high.”

For more information on the Bravern transaction, please see the full article on the Puget Sound Business Journal site.

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Posted by: Nina Turner

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