The lease will house not only Cole & Weber/Red Cell but also Young & Rubicam, Rockey Hill & Knowlton and J. Walter Thompson. All four companies are owned by WPP Group PLC, a London-based company that is traded on Nasdaq.
Scheduled for occupancy in early 2006, Alley24 consists of four buildings: two apartment buildings holding a combined 172 units and two office buildings holding 185,000 sf of office space. Most of the project's 28,000 sf of street-level retail will be in the base of the office building.
The "green" development will feature more natural daylight than traditional buildings, energy and water saving fixtures and environmentally sensitive building materials. The boundaries of the project are John and Thomas streets and Yale and Pontius avenues. The property address is 223 Yale.
In 2003, the project architect, locally based NBBJ, committed to 70,000 sf. In 2004, New Jersey-based Skanska USA Building Inc., the general contractor for the office portion of the project, committed to leasing 25,000 sf. Both were direct deals that did not include brokers. In the Cole & Weber deal, the leasing agents for the property, Mike Dash, Garth Olsen and Scotta Ashcraft of Cushman & Wakefield, represented all parties.
The negotiated lease rate was not disclosed by the parties involved and was not otherwise immediately available. The triple-net asking lease rate for the 27,600 sf of office space remaining to be leased in the project is in the mid $20s per sf per year, according to officespace.com.
Cole & Weber will be relocating from 308 Occidental Ave. S. How much space it occupied there was not immediately available. Skanska will relocate from an 18,000-sf building at 900 Poplar Place S. that it developed and occupied in the early 1980s. NBBJ will relocate from two buildings in the city's Pioneer Square neighborhood, including 111 S. Jackson St.
Vulcan also announced the first signed retail tenant, Espresso Vivace, which will take about 2,200 sf. Vulcan, a company of billionaire Paul Allen, owns about 60 acres in the South Lake Union area, which it used in part to deliver 500,000 sf of new developments in 2004. An additional 900,000 sf is under development this year and another 2.1 million sf is in the development pipeline.
Locally based Harbor Properties, which navigated the Alley24 project through the design and permitting phases, sold its one-third stake in the development to Vulcan earlier this year for an undisclosed price. The transaction gave Vulcan two-thirds ownership of the project and lead developer status.
Just prior to that, Harbor and Vulcan completed the nearby Alcyon development, an eight-story, 162-unit apartment building located next to Cascade Park. The LEED-certified building includes use energy-efficient lighting, water-efficient landscaping, recycled water (for the rooftop pea-patch) environmentally friendly flooring and a hybrid Flexcar program for residents.
Earlier this month, Vulcan and Pemco announced that Seattle-based HSC Real Estate would manage the residential portion of Alley24. Pre-leasing for the apartments will start in early 2006. Other major projects that HSC manages in the greater Seattle area include Metropolitan Tower in downtown Seattle, and Carillon Heights and the Villaggio on Yarrow Bay in Kirkland, WA.
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