Cobb Conversion Gets Under Way

SEATTLE-Interior demolition of the Cobb Building in Downtown Seattle got under way this week. The 95-year-old, 12-story structure is being converted from offices to apartments by locally based Unico Properties, which controls the asset under a long-term ground lease from the University of Washington. The building is located at 1305 Fourth Ave., within a block of Benaroya Hall, the 5th Avenue Theatre and the Fairmont Olympic Hotel. The renovation will convert the building’s 75,278 sf of office space into 92 luxury apartments averaging 810 sf. Three top-floor penthouses will open onto a rooftop deck with Puget Sound views. Street-level retail will also be updated. Unico is not revealing the cost of the conversion and has not yet released the rental price per sf it hopes to achieve. Move-in is projected for spring 2006. The Cobb Building was the first dedicated medical dental building west of the Mississippi when it opened in 1910. To retain the building’s national landmark status, Unico is redeveloping the building in accordance with the Secretary of the Interiors Standards for Rehabilitation. As well, the design team hopes its adherence to sustainable building principals will help it achieve LEED (Leadership in Energy and Environmental Design) certification from the US Green Building Council. The Cobb Building is one of several office and retail properties on the University’s 10-acre Metropolitan Tract for which Unico oversees development and operations as part of its 60-year ground lease with the University that is set to expire in 10 years. The other buildings include Rainier Tower, Puget Sound Plaza, Financial Center, IBM Building and the Skinner Building. Unlike the other buildings, however, the Cobb Building’s pipes and electrical systems desperately needed upgrading, and structural improvements were also necessary for the building’s long-term health.University of Washington Board of Regents signed off on the project in December 2003. As part of the agreement with the University, the board agreed to extend the ground lease term just on the Cobb Building by 45 years, which will allow Unico to achieve an appropriate return on its investment. Unico says it expects the building’s conversion to apartments to increase its return from the property by at least 15%. The agreement also allows for the University to buy out Unico’s interest in the building in 2014 and at other points in the future.