SEATTLE-Hudson Pacific Properties Inc. has completed the $57.7 million acquisition of an office and retail property known as "Merrill Place" located in downtown Seattle's Pioneer Square submarket, directly adjacent to the Company's First & King property. GlobeSt.com had previously reported that the company had entered into a purchase agreement to acquire the property last month.
Merrill Place consists of four interconnected brick and beam buildings spanning an entire city block and comprising approximately 179,000 square feet of office and ground floor retail, along with a 147-stall standalone parking structure. The property is currently 93% leased with approximately 52% of the leases scheduled to expire over the next four years.
Hudson Pacific Properties intends to implement an extensive repositioning of the property, including lobby and common area upgrades, new tenant amenities, an elevator modernization, and mechanical and electrical upgrades. Additionally, current zoning for the property allows for the potential development of a new office building fronting the soon to be improved Alaskan Way waterfront.
The firm plans to start the entitlement process immediately to allow for delivery of the new office building by 2017. According to Victor J. Coleman, chairman and CEO of Hudson Pacific Properties, "This asset is a great complement to our Seattle portfolio and represents a tremendous opportunity to leverage our operational, leasing and development expertise to create value for our shareholders."
According to a Q4 report from Kidder Matthews, the retail market in Seattle continues to improve with moderate positive absorption, new construction, and a strong investment climate for stabilized centers. "Retail development activity remains low as the market slowly re-absorbs excess vacant space and many retailers are reluctant to pay rents that would make new construction feasible. New development remains mostly build-to-suit, or owner/user oriented." Also, according to the firm's report, "mixed-use development in the Seattle and Bellevue urban cores continues to bring new retail space on the ground floors of apartment and office buildings. Much of this is simply complimentary shop space, but in some cases, there are more significant anchor or junior anchor components."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
