Unico Properties has secured a $35 million refinancing loan for 1201 Pacific, a 305,000-square-foot Class A office tower in Tacoma, Wash. Gantry’s insurance-arm Genworth Life Insurance Co. provided the 10-year, fixed-rate, non-recourse note, which replaces the previous 10-year loan that expired in September.
Gantry Principal Mike Taylor and Senior Director Jeff Ballaine arranged the deal on behalf of the borrower.
Unico acquired the property in 1997 from WPAS for $28.8 million, with the help of a $36 million loan originated by Genworth Financial, according to CommercialEdge information. The building’s current assessed value is at $39 million, the Puget Sound Business Journal reported.
Completed in 1969, the LEED Gold-certified office tower rises 25 stories, making it the tallest building in Tacoma. The tenant roster includes Regus, Merrill Lynch, WSP, Vandeberg Johnson & Gandara, RBC Wealth Management and Panattoni Development, CommercialEdge data shows. The property had a 15 percent vacancy rate at the time of the transaction.
Seattle office vacancy rate climbs
Located at 1201 Pacific Ave., the building is across the street from a T Line light rail stop and 1 mile from Tacoma train station, which connects the city to downtown Seattle, some 33 miles north.
Seattle’s office market has been facing significant challenges this year, according to a recent CommercialEdge report. The metro, along with the Bay Area, Austin and San Francisco, had one of the highest vacancy rates across all U.S. markets as of October. Climbing 390 basis points year-over-year, Seattle’s rate reached 25.8 percent that month. This significant increase was in part due to a number of large projects being delivered.