By Meghan Hall
Alexandria Real Estate is continuing to buy-up commercial properties around Seattle, particularly in the neighborhood of Pioneer Square. In a transaction that closed on July 13th, Alexandria added to its portfolio a 1913 office building for $19.775 million, or about $415 per square foot. The seller was Bode Properties IV LLC, affiliated with Johnson Barrow, Inc.
Located at 830 4th Ave. S., the property totals 13,122 square feet. The building on the property, which totals 47,690 square feet, was originally constructed in 1913. According to Google Maps and parcel data, the building is occupied by Turner Construction and several other businesses.
Alexandria’s plans for the property are unclear. However, over the past year, the investment firm has snapped up several historic assets around Pioneer Square with the intention of redeveloping the properties. In July of 2019, Alexandria acquired the Apex Building—constructed in 1905—for $12.3 million. In 2018, Alexandria also spent $20.5 million to purchase the Pacific Commercial Building at 240 2nd Ave. Over in South Lake Union, Alexandria spent $143.5 million on a former city site that will be redeveloped into 175 affordable housing units and a 30,000 square foot community center.
Investment volume fell over the past several months, even in core areas like downtown Seattle, have dropped significantly as investors evaluated where and when to place capital. According to a second quarter report released by brokerage firm Colliers International, investment volume decreased by 300 percent amidst the current economic uncertainty. Capital that was available, stated Colliers, was awaiting stabilization, while investors paused to assess prospects. The market was already slow at the beginning of the year, added Colliers, due to record high deal volume during the fourth quarter of 2019. However, previously strong fundamentals could help the market in the future as activity slowly increases over the next 12 to 18 months.