By Meghan Hall
With its impending closure at 300 Pine Street in Seattle on the horizon, Macy’s has officially sold its remaining floors to Starwood Capital Group for $68.7 million. The transaction closed about a week ago and only recently recorded, according to public documents.
Starwood Capital Group has been slowly acquiring parts of the historic asset—originally constructed in 1929 for Bon Marche and later extended in the 1950s—since 2015. Starwood initially purchased floors 5 through 8 from Macy’s in October of that year for about $65 million, or $216 per square foot. A subsequent purchase in the fall of 2017 saw Starwood acquire floors 3 and 4, as well as 20,000 square feet of subterranean space for $50 million, or about $277 per square foot.
“In such a highly competitive employment market, companies often rely heavily on their office space as both a recruitment tool and as a source of identity. We believe that this asset offers exactly the kind of highly amenitized, lifestyle-oriented office that is in very limited supply and high demand in Seattle today,” said Mark Deason, Senior Vice President at Starwood Capital Group in a statement at the time of Starwood’s original foray into the building.
Amazon currently leases the top six floors of the building, which is known as BlueShift. According to previous reporting by the Registry, floorplates total roughly 80,000 square feet, and at the time of Starwood’s 2017 acquisition, represented the largest contiguous block of existing office space for lease in downtown Seattle. The building boats 15-foot ceiling heights, skylights and a rooftop deck. Over the course of its ownership, Starwood has extensively renovated the building, updating the lobby, adding tenant bike and conference spaces, and seismically upgrading the building.
At the end of last year, Starwood submitted plans to the City of Seattle to upgrade the remaining floors of the building. Currently, public documents indicate that construction permits are pending; known as 300 Pine Tenant Improvement Phase 3, renovations would include 72,000 square feet of office space in the basement, 39,000 square feet of sub-basement office space, an 18,000 square foot meeting center on the first level, an 8,000 square foot mezzanine lobby and part of the second floor office space, around 41,000 square feet. The project value, states documents, is around $16 million. No changes to the building’s envelop or existing site features are planned.