Seattle Office Space News – July 2013

News

Below are comments and links to news articles and other topics relevant to the Seattle office space market from the month of July 2013.

BUILDING SALES

Hudson Pacific Real Estate is set to purchase Four Seattle-area office buildings for $367.5 million. The Four buildings are 505 First Ave South and 83 King Street in Pioneer Square (472,881 SF combined), Met Park North (189,762 square feet) in South Lake Union, and Northview Center in Edmonds (173,776 SF).  This marks LA based Hudson’s first investment in the northwest.

BlackRock has sold the Marketplace Office complex located at 2001 Western Ave for $71.2 million.  The price for the 125,000 square foot complex equates to $569.6 per SF.  It is speculated that the buyer is Atlanta based Ingersoll Realty Corporation.

Beacon Capital is under contract to purchase the 299,000 square foot Exchange Building  located at 821 2nd Ave from Langley Investment Properties.

Spear Street Capital might be setting a record with its sale of 202 Westlake. Sources say the buyer of the 129,400 square foot, six-story office building is GLL Real Estate Partners GmbH, who may be paying more than $90.58 million dollars, or more than $700 per square foot, for the building. The building is fully leased by Amazon.com.

The Central Building, located at 810 3rd Avenue, traded for $34.5 million, which works out to be $179.87 per square foot for the 191,800 square foot building.  The buyer is KBS Strategic Opportunity and the seller is an affiliate of LaSalle Investment Management.  LaSalle paid more than $43.1 million back in 2007, meaning they took a loss of $8.1 million on the deal.

The Columbia building was sold by Jim Potter and Joe Yencich Jr. to Urban Visions for $11.75 million. The buyer plans to spruce up the property that once housed Amazon, located at 1516 Second Avenue, as it brings in new tenants.  The price per square foot equates to $210 per SF.

Urban Vision also has a contract to purchase the 13,676 SF and 109 year old Eitel Building, located across the street from the Columbia Building at 1925 Third Ave.  The seller is Richard Nimmer.  It has not been disclosed how much the building is under contract for, but the deal is scheduled to close by the end of the year.

LEASE TRANSACTIONS

It was announced that Amazon will be taking on even more space in Seattle. The company will be leasing two new 12-story buildings in South Lake Union, near Mercer Street. The buildings, which are being developed by Vulcan Real Estate, will provide Amazon another 614,000 square feet between downtown and Lake Union.  The first building, “Amazon Phase VII,”  will be on the east side of 9th Ave. N. between Republican Street and Harrison Street and the second, “Phase VIII,” will be just south of Phase VII on the west side of 9th Ave. N. between Harrison Street and Thomas Street. Amazon already occupies more than 2.7 million square feet in the neighborhood.

Moz, the Seattle maker of inbound marketing software, leased 50,000 square feet in downtown Seattle at 1100 Second Avenue. They are set to take the Fourth and fifth floors in the building in January.

It has been confirmed that NBC news will be moving its operations to Seattle’s Columbia Center from Microsoft’s Redmond Campus. They are planning on taking 23,000 square feet of space on the 26th floor of the building later this year.

Add3 is moving into larger space on the corner of East Pike Street and Summit Avenue in Seattle’s Capitol Hill submarket. The new space will accommodate up to 50 employees.

Finally, Tesla Seattle plans to be up and running in its new SODO space  within the next three months.  The electric-car maker signed a five-year lease for 21,000 square feet in a remodeled warehouse at 1045 Sixth Avenue South.

PROPOSED PROJECTS

Touchstone, a Seattle-based developer, broke ground on Hill7 on July 8th. The development, which will have 11 stories of office and a 14 story hotel, is located on the west side of Boren Avenue, between Stewart and Howell Streets. Touchstone also announced it will be partnering with Principal Real Estate Investors on the project. It is expected that the office tower, which will have about 300,000 square feet of large-floor-plate space, will be finished in March 2015 and will cost around $129 million, or $430 per square foot to build.

Schnitzer West has set out to create a downtown high rise office building with a corporate campus feel.  The proposed 37-story 754,000 square-foot project at 5th & Madison will require a significant prelease to get started.

Triad Development is making a slight change to the agreement it made with the city of Seattle regarding the proposed 42-story Civic Square high-rise project. The original deal required Triad to close on the purchase of the land by the end of this year, with two one –year extensions, however the company would have had to place $1 million into escrow to execute each option. Instead, Triad proposed that they will provide a promissory note in the amount of $1 million with personal guarantees from the Triad principals, as well as pay the city a total of $150,000 if the company exercises both one-year extension options. The First $50,000, which was due before July 5th, has been paid.

First Western Development Services is planning to build office and parking structures on a site at 2150 North 107th Street in Northgate. They have filed plans with the city for an 86,100 square foot office building and an eight-story parking garage on the site. The building’s design will be done by DDG of Redmond and they plan to break ground next summer.

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One Response to Seattle Office Space News – July 2013

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