Home AEC Ohio Pension Fund Set to Acquire Maritime Building in Seattle for $186MM

Ohio Pension Fund Set to Acquire Maritime Building in Seattle for $186MM

Elliott Bay, Puget Sound, Pioneer Square, Maritime Building, Big Fish, JLL, State Teachers Retirement System of Ohio pension fund Beacon Capital Partners, Alaskan Way Viaduct, Seattle
Image courtesy of NBBJ

By Vladimir Bosanac

As Seattle’s Alaskan Way Viaduct replacement tunnel comes closer to reality, the real estate along the future unobstructed shoreline will inevitably become some of the most remarkable in the city. In June of 2015, when Boston-based Beacon Capital Partners paid $13.1 million, or just over $70 per square foot, for the 187,000 square foot vintage property, it was hoping that its investment would pay off handsomely as the company repositioned the asset and leased it up.

Now, just three years later, the State Teachers Retirement System of Ohio is in talks to purchase the property for $186 million, or $997 per square foot, according to a report by Seattle’s JLL office, which reported the sale in its first quarter of 2018 market report. The deal has not closed, yet, but Beacon Capital had listed the property as sold on its website.

The property, which has been fully leased to Big Fish, a gaming company acquired by Kentucky Derby operator Churchill Downs Inc. in 2014 for $885 million, was built in 1911. It is one of the last heavy timber post and beam waterfront buildings along Seattle’s amenity-rich Pioneer Square along the waterfront. When its renovation is complete, the Maritime Building will offer Class A, modern and innovative workspace but also retain much of its historical character, according to Beacon Capital’s website. This will include high ceilings and warehouse-style windows to let in abundant natural light, and top-drawer amenities.

Big Fish will be relocation from its current headquarters at 333 Elliott West, which will become home to another gaming company, Outreach, which will grow from its 26,000 square-foot property located at 1441 N. 34th St. to two floors in the Elliott property for a total of 38,000 square feet.

The new waterfront is looking to transform the city’s neighborhoods along the water. Pioneer Square will be one of the largest beneficiaries of this re-imagination. The adjacent 26-block park with a 9-acre central public space will reconnect the waterfront to the city. A two-lane bike trail, walking paths, and green space can be enjoyed by all and will restore panoramic views of Elliott Bay, Puget Sound and the mountains beyond.

The eight-story building features 25,000 square feet of retail space on the first floor that has not been leased, yet. Parking for approximately 70 vehicles will also be provided in the basement of the building.