SEATTLE—400 University @ Rainier Square, a 10-story 122,000- square-foot class-A office building, has broken ground at the SW corner of the Rainier Square block at University Street and Fourth Avenue, according to local developer Wright Runstad & Company and partner Intercontinental Real Estate Corporation. The plans call for 110,000 square feet of office space on top of 12,000 square feet of street-level restaurant and lounge space.
Other features include a subgrade mezzanine level, a 6,000-square-foot rooftop deck and third-floor terrace. The property has exclusive bike storage, locker rooms with showers and dedicated tenant parking.
"We are extremely excited to be underway at 400 University," says Walt Ingram, president and CFO of Wright Runstad & Company. "When complete, 400 University will fulfill an important vision for Rainier Square, as one-block, one-project and as a pre-eminent office, retail and residential destination offering an unbeatable location, proximities, and a full complement of tenant and residential amenities. More importantly, 400 University reflects our continued belief in downtown Seattle and the long- term prospects for its economic growth and office demand."
An underground concourse connects the project to the Washington Athletic Club, Seattle Hilton, Union Square and the Washington State Convention Center. It is also located one block from the University Street Link light rail station with access to major bus lines.
With its efficient 11,500-square-foot floorplates, 400 University offers the benefits of a smaller, secure and more easily controlled environment. Office tenants of 400 University @ Rainier Square also will benefit from Rainier Square amenities which will include an Equinox fitness club, PCC Urban market and the Grand Hall as well as 16,000 square feet of additional outdoor space.
Intercontinental, which has been an active multifamily investor in Seattle since 2013, looks to build a significant office portfolio in the market. Intercontinental made its first Seattle office investment in December 2019 with the $157 million acquisition of Roosevelt Commons, a class-A office complex in the University of Washington's Innovation District.
"The site's ideal location initially attracted us to the opportunity," said Jessica Levin, Intercontinental's senior director of acquisitions. "400 University's proximity to public transportation options and an array of amenities within the Rainier Square development and the immediate neighborhood make the site one of the top locations in downtown Seattle. Our investment in 400 University represents our commitment to Seattle and our belief that Seattle's dynamic and innovative economy is well positioned for long-term growth."
400 University @ Rainier Square increases Intercontinental's portfolio in the Pacific Northwest to more than 2,000 multifamily units and more than 400,000 square feet of commercial office space.
"We've been active over the past several years with 2,000 units since 2009," Levin tells GlobeSt.com. "Seattle is a multifaceted economy with many growth companies driving expansion. Tech companies will follow those drivers, including quality of life attracting talent in a live-work-play environment. For example, Amazon and Microsoft draw employees to the area and spin off into other companies. We'll continue to evaluate opportunities and are long-term believers in the market."
Eastdil Secured led by managing directors Jeffrey Weber and Jason Flynn in the firm's San Francisco office arranged and structured the joint venture partnership. Greg Inglin and David Abbott of Colliers International represent the office leasing team.
When delivered in July 2021, the NBBJ-designed 400 University @ Rainier Square will complete Rainier Square, a 1.2 million-square-foot mixed-use project being developed by Wright Runstad in a separate venture. Encompassing an entire city block on the University of Washington's historic Metropolitan Tract, Rainier Square is being built around the University's iconic 41-story Rainier Tower. The distinctive sloping glass tower designed by NBBJ will include 720,000 square feet of office, more than 80,000 square feet of retail, and 191 luxury apartments and amenities on the top 18 floors. When completed in late 2020, Rainier Square will be the second tallest structure in Seattle.
The Puget Sound regional office market first quarter results saw vacancy inch up to 6.05%, from 5.87% last quarter, as the region braces for what is expected to be a tumultuous next few quarters of 2020, according to a report by Kidder Mathews. The first quarter ended showing solid net office absorption of 2 million square feet in the region with delivery of five major office projects, boosting the region's office inventory to just under 211.1 million square feet, says the report.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
