Home Industry News Unico Properties Spends $359MM to Acquire Two Office Buildings in Downtown Seattle

Unico Properties Spends $359MM to Acquire Two Office Buildings in Downtown Seattle

Seattle, Unico Properties, Ivanhoé Cambridge, Wright Runstad, 1111 Third, 2nd & Spring, Madison Center, Canada, University Street Station
1111 Third and 2nd & Spring. Image courtesy of Unico Properties.

(EDITOR’S NOTE: Boston-based AEW Capital Management was Unico’s equity partner in the transaction. Unico acquired 1111 Third for $274.5 million, or approximately $485 per square foot, and 2nd & Spring for $84.5 million, or approximately $603 per square foot, according to public records filed with king County. Unico acquired both properties from Montréal, Canada-based Ivanhoé Cambridge.)

SEATTLE (July 23, 2018) — Unico Properties LLC, a real estate investment and operating company, announced that it has purchased two Class A office properties in Seattle’s southern Central Business District (CBD). Encompassing the 1100 block of 2nd Avenue and totaling 705,868 square feet, the property consists of adjoining assets: 1111 Third, a 33-story tower with 565,883 square feet of traditional office space, and the adjacent 2nd & Spring, a five-story historic creative office building totaling 139,985 square feet. The buildings are collectively 95 percent leased following a $65 million renovation completed in 2017.

“Together, the buildings offer the rare combination of high-rise views and historic, creative office space, both of which cater to traditional, creative and technology clients alike,” said Unico Properties Vice President and Regional Director Andrew Cox. “The combined investment offers a unique ability to provide, via 1111 Third, a desirable high-rise experience in a repositioned tower, while 2nd & Spring offers a cool, creative office space with century-old architectural style, modern amenities, very high ceilings and large, open floorplates.”

Prominently located a few blocks from Seattle’s retail core and its Waterfront, 1111 Third and 2nd & Spring, which are attached by an alley sky-bridge, provide immediate pedestrian access to numerous public transportation options, restaurants, hotels, and other amenities. Served by bus transit along Third Avenue, a dedicated bike lane along Second Avenue, and sitting adjacent to University Street Station, which connects the entire Puget Sound region via bus and the light rail system, the properties boast some of the city’s best access.

1111 Third is a high-quality Class A office tower offering striking and unobstructed views of Elliot Bay and the Olympic Mountains, and newly updated office and amenity space. Developed in 1980 by Wright Runstad, the property includes a 358-stall, six-story subterranean parking garage. Recent renovations include updates to the exterior façade, store fronts, and outdoor plaza, expanded and improved modern lobby, and installation of a new fitness center, bike storage, and showers and locker rooms.

2nd & Spring is a fully-repositioned, mid-rise, creative Class A historic office building. Originally built in 1906, the building features 15-foot vaulted and exposed ceilings, expansive window lines, exposed brick walls, parking with bike storage and showers, and a 70-stall parking garage. Additionally, the building has new, state-of-the-art building systems, including a full hydronic conversion, a new lobby off of Third Avenue, an updated exterior curtain wall and glass block façade, and modern tenant improvements throughout the building.

“This purchase demonstrates Unico’s confidence in the continued relevance of the southern CBD,” said Cox, citing nearby projects Rainier Square Tower and 2+U, as well as the recent delivery of F5 Tower and Madison Centre as submarket heat indicators. “With some of the best infrastructure in the city, this location will benefit from Seattle’s growing density and its Waterfront development project. This market context combined with the buildings’ quality and stability make 1111 Third and 2nd & Spring an attractive addition to our portfolio.”

About Unico Properties LLC
Unico Properties is a private real estate firm offering investment, development, management, and sustainability services in emerging markets across the U.S. Founded in 1953, Unico creates innovative, people-focused building experiences through a cadre of subsidiary companies that deliver boutique expertise and institutional execution for its own accounts and select third-party clients. For more information about Unico, please visit the firm’s website atwww.unicoprop.com.