By Jon Peterson
Seattle-based Vulcan Real Estate has placed on the market for sale the 317,000 square foot Amazon phase 8 property in Seattle located at 325 9th Avenue North. This transaction could be somewhere in the range of $240 million to $250 million, according to sources that are familiar with the transaction.
Vulcan would not comment on the potential sales price other than to say that the seller will let the market determine the pricing and that the property is being marketed without a stated price.
Vulcan does have a plan in mind for the proceeds from the sale and would like to deploy them to other opportunities in the region. “Vulcan will re-invest funds from the sale into other opportunistic and value-add investments within the Puget Sound region,” says Lori Mason Curran, investment strategy director of real estate for Vulcan.
The listing agents on the sale are offices of two brokerage firms. This includes Kevin Shannon’s team at Newmark Grubb Knight Frank and the CBRE Seattle office, which is represented by Tom Pehl, Lou Senini and Owen Rice. Pehl declined to comment when contacted for this story.
Vulcan was the original developer of the property; the asset was completed in 2015 and is 100 percent leased to Amazon. The lease with this tenant has another 14 to 16 years left to run.
The vast majority of the building is office space and a portion of the ground floor is dedicated to retail. The office portion of the property totals 312,805 square feet, and another 4,637 square feet is comprised of ground floor retail space. The tenants in this part of the property are Eltana and Hurry Curry of Tokyo.
The trade of Amazon phase 8 should become part of the $5 billion worth of office building sales transactions that could be happening in the greater Seattle market in 2016. Should this level of activity occur, it would mean an all-time record for the Seattle market, according to sources that track the sales of office buildings in the Seattle area. This level of activity would include the sale of assets downtown and in the suburbs.