Seattle Class A Office Building Commands $129.3M

MetLife paid a whopping $129.3 million for a Class A office building in Seattle's South Lake Union.
Alley24, Seattle

Alley24, Seattle

SeattleMetLife has acquired Alley24, a 215,402-square-foot, core Class A office building with ground floor retail in Seattle’s South Lake Union submarket, from Vulcan Inc. and PEMCO Insurance Co., for $129.3 million.

HFF marketed the property on behalf of the sellers. The property was 85 percent leased at the time of the sale.

“Alley24 is one of the only true mixed-use assets in the South Lake Union submarket, a centrally-located, high-amenity, pedestrian-oriented location that has maintained historical occupancy of more than 96 percent since it was completed,” Todd Tydlaska, HFF’s senior managing director, said in a prepared release. “Most significantly, banner tenants NBBJ, Skanksa and Cole & Weber have occupied the building since it was delivered in 2006.”

Alley24 is located at 221 Yale Ave. N. in Seattle’s epicenter of industry and innovation and one of the first LEED Certified green neighborhood plans in the nation boasting a Walk Score Index of 95.

Originally built in 2006, the property was one of Seattle’s first mixed-use projects to earn LEED certification and features sustainable elements such as abundant natural daylight, low energy and water flow fixtures and environmentally sensitive building materials.

It also offers tenants two roof decks, operable windows with sun-tracking shades, flexible floor plans, and ground floor retail.

According to Nick Kuch, senior managing director at HFF, the opportunity to acquire a core asset in South Lake Union attracted domestic as well as foreign capital and there was a deep buyer pool for the building.

Also part of the HFF investment sales team was Michael Leggett, who is the co-head of HFF’s West Coast team.

Image courtesy of Red Studio Inc.