(EDITOR’S NOTE: According to sources familiar with the transaction, the property sold for $580 million.)
Iconic 770,000 SF, Eight-Story Historic Mixed-Use Building to Feature Class A Office Space and Renovated Ground-Level Retail
Seattle-based commercial real estate firm Urban Renaissance Group LLC (URG) and KKR, a leading global investment firm, today announced the acquisition of the 300 Pine St building in downtown Seattle.
Located on a full city block between 3rd Ave and 4th Ave in the heart of Seattle’s retail core, the 770,000 sq. ft., eight-story mixed-use iconic building with its historic façade will feature 85,000 sq. ft. renovated ground-floor retail designed to accommodate retail flagship stores, along with a new stunning 4th Avenue entrance to access the 682,000 sq. ft. of commercial office space currently fully-leased to a single tenant. The office portion will feature 80,000 sq. ft. floorplates, seismic retrofitting, and over twenty skylights including two light wells providing additional light for the top two floors.
Originally home to Seattle’s beloved Bon Marché department store, the art-deco style building was constructed in 1929 with four additional stories added in 1955. Between 2015 and 2017, then-owner Macy’s sold the upper six levels for office space, and in 2020 the department store closed.The renovated landmark building will feature a timeless façade, a 20,000 sq. ft. rooftop deck, one-of-a-kind interiors, and 15-foot tall ceilings with ornate colonnades and dramatic architectural features that originate from the 1920’s era department stores. The historic building elements will be reinvigorated with a contemporary plan that connects multiple program elements though a central common area.
The new ground-level retail space, conveniently located above the underground Westlake Light Rail Station with bus stops at the west (3rd Ave) and east (4th Ave) entrances, will be named ‘The Bon Marché Collective’ in honor of the building’s history. It will offer retail suites for lease ranging from approximately 3,000 sq. ft. to 16,600 sq. ft. with additional potential for a ground-floor grand food hall. Victrola Coffee currently occupies retail space on 3rd Ave and will remain at the building’s southwest corner.
“Investing in this historic building marks our fourth investment in the Puget Sound Region,” said Justin Pattner, KKR’s Head of Real Estate Equity in the Americas. “This is an attractive market poised for long-term growth driven by its strong and growing workforce, attractive cost of living, and simply being a highly desirable place to live with a great quality of life. 300 Pine is an important part of Seattle’s community and we are looking forward to bringing it to its full potential.”
Billy Butcher, Chief Operating Officer of KKR’s Global Real Estate business, added: “We believe in the strong potential of unique and iconic buildings that serve large corporate users with long-term leases and we are very excited to invest in 300 Pine as part of our Prime Single Tenant strategy. We have acquired over ten million square feet of similarly situated buildings recently and the Puget Sound Region has quickly become a large part of that strategy, given our belief in the region’s attractive fundamentals.”
“Originally constructed as a monument to Seattle’s retail strength in the Pacific Northwest, this beautiful historic building remains a symbol of our city’s strength and resilience,” said Urban Renaissance Group CEO Patrick Callahan. “We’re thrilled about this transaction with KKR and excited about the future of this building. This acquisition reflects our mutual confidence in the region and specifically in downtown Seattle, where we look forward to strengthening the heart of Seattle’s retail core.”
KKR’s Confidence in the Puget Sound Region
300 Pine marks KKR’s fourth acquisition in the Puget Sound region. Since entering the Seattle real estate market less than a year-and-a-half ago, KKR has completed several major transactions with URG totaling more than two million sq. ft.:
· The Summit, a three building, 915,000 sq. ft. Class A office complex in Bellevue’s central business district.
· Tower 333, a 20-story, Class A office tower in Bellevue’s central business district which is fully leased to a single tenant.
· F5 Tower, a 43-story, Class A office tower in downtown Seattle which is fully leased.
KKR is making the investment from one of its sponsored real estate investment vehicles focused on high-quality, stabilized, income-oriented assets.
Eastdil Secured represented the Seller in the transaction and advised KKR and URG on the financing.
About Urban Renaissance Group
Urban Renaissance Group LLCis a Seattle-based full-service commercial real estate company, engaged in acquisitions, development, asset management, leasing, property management and ownership in Seattle, Bellevue, Denver and Portland. Founded in 2006, the strategic premise of Urban Renaissance Group (URG) is that the form of the American City is changing. URG acts as a catalyst that understands and ignites that change, thereby building community, generating appropriate returns for its investors and opportunities for its partners and employees.
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.