(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SEATTLE-As part of a plan to allow the developer to deploy earnings into ongoing South Lake Union development, Vulcan Real Estate has put the properties housing Amazon.com’s global headquarters here on the sale block. The parties involved were not able to reveal a list price for the campus to GlobeSt.com, but industry sources unrelated to the deal say the aggregate price for the properties is expected to be greater than $1 billion.
CBRE’s vice chairman Kevin Shannon will lead the marketing effort for the property. “The Amazon Corporate Headquarters buildings represent exactly what core capital wants today: new product featuring durable, credit income streams in great CBD locations,” Shannon said in a prepared statement. “Markets like South Lake Union, South of Market in San Francisco and Silicon Beach in Santa Monica command premium rents because of huge tenant demand. Technology and corporate tenants love state-of-the-art campuses in amenity-rich, transit-oriented environments like Amazon’s because these locations allow them to attract and retain the best talent in the workforce.”
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Shannon tells GlobeSt.com that six different phases of the campus, composed of 11 buildings and 1.8 million square feet in the heart of the newly revitalized South Lake Union neighborhood, are being marketed separately and that Vulcan developed the buildings in phases between 2010 and 2012. Amazon occupied all the buildings after construction was finished.
South Lake Union is also home to global healthcare organizations, multifamily residential developments and a thriving retail and restaurant core that was once better known for warehouses and light industrial operations. While Vulcan has developed nearly 30 acres of land in this submarket, the company still owns an additional 30 acres that it plans to redevelop. In addition, the company will still maintain a 3-million-square-foot portfolio in Seattle.
“We have been deeply involved in the redevelopment and revitalization of South Lake Union for over a decade, and the sale of the Amazon campus will allow us to continue to invest in the neighborhood and the community,” said Ada Healey, VP of Vulcan, in a prepared statement. “Our focus today is on helping to continue to make South Lake Union a thriving example of sustainable, mixed-use urban development where businesses, residents and visitors can experience the best of Seattle.”
Healey went on to say that the firm’s commitment to South Lake Union has been and will continue to be at the heart of its development efforts. Vulcan is redeveloping the Supply Laundry Building into an environmentally friendly historic restoration and has broken ground on its new residential development, Stack House, a 278-unit apartment complex. Also, the next phase of the U.W. Medicine research campus and upgrades to the Mercer corridor are under construction.
Along with Stack House, Vulcan is also developing the Martin, a 188-unit apartment tower located in the north end of downtown Seattle. The company continues to invest in South Lake Union and elsewhere in Seattle as a primary component of its growth strategy.
As GlobeSt.com previously reported earlier this month, while the sellers could not reveal the anticipated price and no list price had been given, some industry sources unrelated to the asset speculated that the Westlake/Terry office property in South Lake Union could fetch near $200 million. Jointly owned by Vulcan and Group Health Cooperative, the property that was recently put on the sale block consists of two adjacent buildings on a full block in the heart of the booming neighborhood, with Group Health as the anchor tenant containing 700 employees on site.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
