(EDITOR’S NOTE: The value of the ground lease has not yet recorded in public records, but the lease is expected to last 50 years, plus a 25-year renewal option. The project is located at 4328 Brooklyn Ave. NE. Designed by Perkins + Will, the project wrapped up design review at the end of 2020.)
SEATTLE — LPC West, the West Coast arm of national real estate firm Lincoln Property Company with Intercontinental Real Estate Corporation, has entered into a long-term ground lease with plans to build a 12-story office building in the heart of Seattle’s University District (“U District”), one of the region’s most vibrant and dynamic innovation zones.
Located directly above the U District Light Rail Station set to open later this year, the 266,000 square-foot University District Station Building will consist of Class A office space with approximately 3,500 square feet of ground-floor retail space. The transit-oriented building will offer convenient nearby bus connections and bicycle access. The property is located just two blocks from the University of Washington in a fast-growing region fueled by the growth of leading technology and life sciences businesses. The building is scheduled for completion in 2024.
“The University District Station Building will be a premier transit-oriented building in a flourishing neighborhood,” said J.P. Harlow, senior vice president of LPC West. “We are thrilled to strengthen our relationship with the University of Washington, one of the world’s leading research universities, and to support the positive momentum of this neighborhood.”
The University District Station Building will feature large floor plates and unobstructed views of Mt. Rainier, Lake Union, and the Olympic Mountains. The property will also offer comprehensive transit accessibility, with connectivity to the Seattle CBD and Seattle-Tacoma International Airport via direct underground access to the U District light rail station set to open this fall, as well as other regional transportation connections available by bus.
“Coming off our recent completion of 400 University, we are excited to continue to grow our footprint in both the Seattle market as well as the University District,” said Jessica Levin, Intercontinental’s Senior Director, Acquisitions. “The University District Station Building provides an excellent opportunity to partner with LPC West to produce hundreds of union jobs while investing in one of the premier transit-oriented sites in the city.”
The UW educates more than 60,000 students across its three campuses and, since 1972, has received more federal research funding than any other public university in the U.S. In 2020, Reuters ranked the UW the nation’s most innovative public university for the fourth year in a row.
“The University District Station Building is the next chapter in the University’s dedication to the neighborhood,” said Randy Hodgins, the UW’s Vice President for External Affairs. “The building will integrate light rail in an exciting way, bringing hundreds of people into the heart of the district to visit the campus, patronize a variety of great businesses, or enjoy museums, live music and other performing arts venues.”
Seattle is the nation’s 15th largest metropolitan area and has experienced rapid economic growth fueled by dynamic businesses headquartered in the region, including Amazon, Microsoft and Starbucks, along with smaller technology and biotechnology firms.
The University District is a thriving neighborhood that is home to a significant portion of off-campus student housing, cafes, historic performance venues, and other amenities, including University Bookstore. Following a significant zoning revision in 2017, the U District has supported increased density, with several new towers under construction. Other investments by the University include a new Life Sciences Building, the Bill & Melinda Gates Center for Computer Science & Engineering, and a new Population Health Building, alongside new parks and apartment buildings.
About Lincoln Property Company
Lincoln Property Company manages and leases over 403 million square feet of office, industrial, and retail projects, and currently manages over 212,000 multifamily units. Over the last 15 years, Lincoln has been increasingly active with $15 billion of acquisitions and development, bringing its current total to over $76 billion in AUM. In the Pacific Northwest, LPC West currently owns and operates approximately 6 million square feet. Its properties span a variety of markets including Seattle and Bellevue and the surrounding region. The PNW has a robust pipeline of over 1 million square feet of office development in addition to over 1,000 multifamily units under construction and in planning.
About Intercontinental Real Estate Corporation
Intercontinental Real Estate Corporation is an SEC Registered Investment Adviser with decades long experience in real estate investment, finance, development, construction management and asset management. Since 1959, Intercontinental and its affiliates have managed, developed, or owned collectively over $14 billion in real estate property. Today, Intercontinental manages a real estate portfolio of approximately $10 billion for its clients. The Intercontinental portfolio is diversified both by robust property mix and by geography. Fund strategies actively seek opportunities to invest in both Core and Core-Plus properties, as well as in Value-Add operating properties and development projects.