Amazon.com, Inc.(NASDAQ:AMZN)’s purchase of the real estate office space in Seattle has made it to the records as the biggest transaction for office spaces, in 2012. The online retail store recently purchased office space in Seattle, comprising of 11 buildings. This headquarters complex has been bought by Amazon for a staggering $1.16 Billion. The deal has already been made, and Amazon has already deposited a non-refundable amount of $23 million to that effect. The complex is located in the South Lake Union area, and the total square feet covered by the complex amounts to 1.8 million square feet.
Amazon declared this during a filing with the U.S Securities and Exchange Commission. The company will be adding more money to the deposit on the 22nd of October, with the total amount coming to $51 million. The rest will be paid by the fourth quarter, making Amazon.com Inc the owner of the impressive property. This amount has made the purchase the priciest in the country, in terms of office properties this year.
The office complex belongs to Vulcan Inc. This is the investment company owned by Paul Allen, who had put up the property for sale in August this year. The money which Paul Allen’s company will receive will be used to invest in other properties in the same area. The South Lake are is a very attractive prospect for many, and it has been growing steadily ever since the 2004 planning of making it one of the “urban centers”.
Ada Headley, the Vice President for Vulcan, said that when they had put the headquarters for sale, they had expected separate buyers for the buildings. They had certainly not expected Amazon to come in and buy off the whole property. Headley refused to comment upon the capitalization rate, however.
After the filing, both CBRE Group Inc (broker for the Amazon campus) refused to comment, as did Drew Herdener, a spokesman for the Amazon group. Kevin Shannon, the vice chairman for CBRE did, however, comment upon the connection between Fundamentals and Capitals. He said that the fact that the best office market fundamentals are in Seattle, the picture is looking good for Amazon.