Seattle’s Tallest Tower Set to Hit Market Later This Year
- Mar 17, 2015
By Alex Girda, Associate Editor
With the price of Seattle real estate continuing to grow, some entities are considering offloading even their most prized assets in order to ensure large cash-ins. That seems to be Beacon Capital Partners’ strategy for one of its Seattle properties: Columbia Center. The Boston-based private equity real estate company has reportedly employed the services of Eastdil Secured for the upcoming sale of the city’s tallest skyscraper. According to Finance & Commerce, the formal marketing process should soon be underway.
Columbia Center is not only Seattle’s tallest building, it’s the second-tallest skyscraper west of Chicago. The 937-foot-tall structure was constructed back in 1985 and totals roughly 1.5 million square feet of space. Back in 2007, the property was acquired from Blackstone for $621 million. Suffering as a result of the financial crisis, the asset was only two-thirds occupied and was put through an extensive renovation process that upgraded its conference center, signage, gym and roof. The process also included a reimagining of The Columbia Tower Club.
With capital pouring into the Seattle area market and absorption continuing to go well, there is definitely a market for the tower. In fact, according to previous sale data for comparable assets, the last price per square foot recorded for a skyscraper in Seattle stood at $499 when 1201 Third Ave. traded hands in 2012. That means Columbia Center would sell for an estimated $750 million, and that’s with rates from three years ago.
The value of Seattle office space has since climbed, and it now bears one of the lowest vacancy rates in the country. The average price per square foot for Seattle office assets in 2012 stood at roughly $250, while 2014 ended with an average of around $290, a Marcus & Millichap report shows.
Image courtesy of https://columbiacenterseattle.com