In the dynamic heart of Seattle’s Denny Triangle neighborhood, the property at 818 Stewart is emerging as a prime investment opportunity, brought to market by JP Morgan Asset Management and its brokerage firm, Newmark. This 14-story building encompasses 238,250 square feet and presents a compelling narrative of strategic location, significant tenant occupancy, and robust amenities, positioning it as an asset that in many ways stands apart in the Seattle commercial real estate landscape.
Developed by Schnitzer West in 2008, the property underwent a $7.4 million cosmetic renovation in 2018, showcasing 818 Stewart as a modern architectural structure coupled with functional and modern amenities. These include 11,600 square feet of indoor/outdoor collaborative space, a 4,200 square-foot fitness facility, showers, a conference center, and secure bike storage. JP Morgan purchased the property in 2011 in conjunction with 1918 8th Avenue building for $480 million, according to industry reports. The 818 building was sold for $129.3 million, or around $543 per square foot.
The property’s significance is underscored by its anchor tenant, Seattle Children’s Hospital, which occupies roughly 75 percent of the building. Seattle Children’s Hospital’s extensive footprint in the Denny Triangle, totaling 1.46 million square feet, highlights the area’s attraction for healthcare and research institutions and is part of the hospital’s vertical urban campus.
Overall, the building is 89 percent occupied, with a weighted average remaining lease term of 4.2 years, indicating a blend of stability and potential for new leasing opportunities. The building’s design features average floor plates of 15,000 to 19,000 square feet and five levels of underground parking, catering to a diverse range of tenant needs.
Positioned within the Denny Triangle submarket of Downtown Seattle, 818 Stewart benefits from its proximity to both the technology-focused South Lake Union and the more traditional office settings of the Central Business District. This location, coupled with convenient access to mass transit, freeway on and off ramps, and nearby new residential, hotel, and retail developments, could provide a competitive edge in attracting a diverse tenant base. The building’s location is further enhanced by significant nearby developments, including the nearly $2 billion Seattle Convention Center Expansion and the recently completed 1,260-room luxury Hyatt Hotel.
Surrounding the area within a half-mile radius, there are currently 21,295 housing units, with an additional 3,000 units under construction. Since 2015, this neighborhood has seen the completion of 10,161 new units, the marketing documents explain.
The Newmark team is led by Kevin Shannon with key team members Nick Koucha, Michael Moll, Rob Hannan, Ken White, Liam Ogburn, and Rachel Jones, helping in the marketing and sales process. At this time, no pricing guidance has been provided for the asset.
