The developer of the project is a joint venture of Vulcan, PEMCO Insurance and Harbor Properties. Vulcan and PEMCO Insurance are the property's landowners and Harbor is an equity partner. The development site is located between John and Thomas streets and Yale and Pontius avenues. A portion of the site is the vacated Richmond Laundry facility.
The deal is scheduled to close in February. NBBJ's 430 Seattle employees are currently located in two separate office spaces in Seattle's Pioneer Square neighborhood, where the company has maintained offices for more than 20 years. The vast majority of space it leases is at 111 S. Jackson, where the firm's lease was to run out in December of 2004. NBBJ Principal Rob Swartz tells GlobeSt.com the company has negotiated a one-year extension.
Swartz adds no decision has yet been made with regard to its current 20,000-sf lease at 83 King St, which runs out prior to the scheduled move. With the company's head count having come down a bit lately, Swartz says the space could be subleased or the company may decide to extend its lease through December 2005 for a smaller space.
Back in August, Swartz told GlobeSt.com that moving to a new building was not an option due to "timing and economics," which was to say a new building couldn't be completed quickly enough and, even if it could be, the lease rates would be too high. Swartz now tells GlobeSt.com the firm was "surprised at the kind of total package" the developers could offer.
In addition to allowing the company to fit its more than 400 local employees on a minimum number of floors, Swartz says the lease turned out to be quite attractive. "When all the costs were factored in, it fit within the financial situation we need to maintain a competitive position," says Swartz. "The economics were attractive."
Additionally, Swartz says the firm will have the opportunity to showcase sustainable design principals in developing the entire project, which will include office space, retail, housing and underground parking. The project will include elements such as increased natural daylight, fresh air control through operable windows, an accessible green rooftop and the use of environmentally sensitive building materials.
The building is planned to be one of Seattle's first mixed-use projects that is LEED-certified (Leadership in Energy and Environmental Design). LEED is an industry measurement tool created by the U.S. Green Building Council to define green, environmentally and community-conscious projects.
"NBBJ's interest in this property acted as the catalyst that allowed us to put this extraordinary partnership together," says Ada M. Healey, vice president of real estate for Vulcan Inc.
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