The announcement of Seattle’s first major downtown skyscraper to be built in nearly two decades has been touted as a sign the Northwest’s largest metropolitan area is on an economic rebound.
Stockbridge Capital Partners of San Francisco announced Jan 22 that it planned to begin construction on a 43-story project that could include about 16 lower floors and approximately 175,000 square feet for a hotel.
The balance of about 525,000 square feet would be office space in the 660 foot tower, known thus far as the Fifth and Columbia building.
Stockbridge bought the site in 2007 and agreed to retain the historic First Methodist Church sanctuary at street level. But damages resulting from demolition of the adjacent annex delayed construction. And the subsequent collapse of the financial markets and Seattle-based Washington Mutual put the project on indefinite hold.
Now Seattle’s economic revival has prompted Stockbridge to move ahead with what is estimated as a $400 millon investment.
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| A new 43-story skyscraper will join Seattle's downtown skyline for the first time in decades |
Elsewhere in the city major investment has occurred in office and mixed-use projects in the South Lake Union area. Prominent among the activity is online retailer Amazon.com’s decision to consolidate its headquarters in the area with the whopping $1.16 billion purchase in September of 2012 of 1.8 million square feet of space previously leased from Microsoft co -founder Paul Allen’s Vulcan Real Estate.
That followed by less than a year the company’s acquisition of three full city blocks closer to the downtown core accompanied by announcement of its plans to build a 3.3 million square foot office complex.
Meanwhile Stockbridge and Seattle-based Capstone Partners revealed earlier in January plans for the 340,000 square foot Dexter Station, to be launched “on spec” with no tenants signed.
Another mostly-spec project that came to market recently was 202 Westlake, developed by Spear Street Capital. Amazon eventually took most of its more than 100,000 square feet.
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| A vew across Lake Union to the booming south side with downtown in the distance |
Also a potential factor in the South Lake Union area is Skansa USA, which has previously discussed the possibility of a 300,000 square foot office plus complex at 400 Fairview Avenue.
A lingering question is whether demand in the South Lake Union area will spill southward toward downtown or whether much of the current activity is from what might be called the consolidating “Amazon effect.”
The Gates Foundation, which spreads the philanthropic assets of billionnaire Microsoft co-founder Bill Gates and investor Warren Buffett, is also headquartered in the area.
The newly-opened Museum of History and Industry, relocated from near the University of Washington, and adjacent waterfront park and boat museum is one of the many attractions along the inland Lake Union waterfront. The southern end of the lake is also the terminus of the Seattle streetcar line that runs into the downtown core.
The internationally recognized Fred Hutchison Cancer Center along with several medical research/development and high tech companies have provided much of the existing employee base apart from relative newcomer Amazon.
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