Rockwood buys Seattle tower from Tishman

The real estate firm has purchased the Second & Seneca office building on behalf of a core real estate fund for $186 million. The acquisition immediately follows the firm’s launch of its ninth value-added fund.

Rockwood Capital has purchased an office tower in downtown Seattle from Tishman Speyer Properties for $186 million, according to data from Real Capital Analytics. 

Although representatives from Tishman and Rockwood declined to comment, sources familiar with the matter have told PERE that Rockwood, which has offices in New York and San Francisco, acquired the Second & Seneca office building at 1191 Second Avenue in Seattle on behalf of a core real estate fund. Details of that fund could not be determined. 

The 22-story, 434,000-square-foot office building, also known as the R2D2 Building or the Ban Roll-On Building for its distinctive shape, currently is 87 percent occupied. Tenants include anchor tenant Safeco Insurance, Washington Mutual and Berlex Laboratories. The transaction also includes the sale of an adjoining eight-story office property at 1101 Second Avenue. 

Tishman initially bought Second & Seneca in April 2007 for $230 million. In July 2010, the firm completed a $170 million recapitalisation of the building. Representatives from Eastdil Secured, which marketed the building on Tishman’s behalf, declined to comment. 

Separately, the acquisition comes soon on the heels of news that Rockwood Capital is launching Rockwood Capital Real Estate Partners IX, a value-added commingled vehicle targeting $750 million in equity commitments, with a hard cap of $1 billion. Fund IX primarily will target hotels, offices, residential and retail properties throughout the US with a focus on California and the Boston-to-Washington corridor. The firm is seeking properties with steady income streams that have the potential for redevelopment.