Leigh Callaghan, with fellow Colliers broker David Rothrock, leased the property's two buildings at 4300 and 4325 Roosevelt Way NE in Seattle's University District. Callaghan tells GlobeSt the 132,000 rentable sf of five-story Building A was spoken for about a year ago by Safeco -- the headquarters of which is just a block away.
"When we started the project, the vacancy rate in Seattle was about 1.5%," says Callaghan. "The activity created a competitive market that brought these tenants to the table more quickly than what would be happening in today's environment."
Next door stands seven-story Building B, the lease for which says Callaghan was recently signed with the University of Washington after nearly a year of negotiations. UW, taking on all 75,000 sf of B's space, appears to be a landlord's dream tenant. Though rent rates around Seattle have been weakened by the market, Callaghan says, "To the U's credit, they didn't try to negotiate us down."
In fact, Callaghan says the development has weathered the market well. "We were able to hold the rates in both cases at very favorable levels. It's been a great deal for everybody concerned." While he was unable to disclose the rents agreed to by the parties, the broker was able to say both triple-net leases are ten-years-plus in term.
Both tenants will be utilizing their respective spaces as administrative offices. Building A is expected to be ready for occupancy next August, with B coming online later in the year.
Locals James Whitney and Malcolm Goodfellow are Portage Bay's two partners, both of whom previously worked for Howard S. Wright Construction. Callaghan says Goodfellow has developed predominantly in the hotel sector. A current project is the University Inn just south of Roosevelt Commons.
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