Hudson Pacific Properties Buys Seattle Office Development Site in $85M Deal

Hudson Pacific Properties has acquired Washington 1000 in Seattle, a fully entitled development site, for $85.5 million. Hudson plans to build a 546,000-square-foot class-A tower with a total investment, including the land acquisition cost, of $340 million to $360 million.

Located at 1000 Olive Way within the Denny Triangle submarket, which is home to Amazon and directly adjacent to the $1.9 billion Washington State Convention Center Addition, the state-of-the-art property will be built to LEED Gold and Fitwel certifications, with 100% carbon neutral operations, enhanced HVAC filtration units and antimicrobial finishes at key touchpoints. The property will also feature 22,000 square feet of outdoor amenity space, which includes an indoor-outdoor rooftop lounge and two 5,000-square-foot terraces off the second-floor main lobby. LMN and Callison RKTL are serving as the architects on the project.

The Denny Triangle submarket is a target market for office and life science developers as the areas supports. Earlier this month, BioMed Realty acquired Denny Park South in Seattle, a 1.6-acre development site in the South Lake Union/Denny Triangle district. The two-parcel site will accommodate a 616,000-square-foot development for a life science use. The purchase of this development site is a prize addition to BioMed’s substantial portfolio in the Seattle area. BioMed owns a 1.2 million-square-foot portfolio in Seattle, including the recently completed flagship Dexter Yard project in South Lake Union. The acquisition of Denny Park South, as well as with the T6 Innovation Center at 200 Taylor Avenue North, a similarly 1.8-acre, two-parcel development site that the firm purchased last year, represent 1.2 million square feet of development potential. In total, the company has 2.4 million square feet of assets or developments in the Seattle area.

Hudson Pacific has built a significant portfolio in the submarket. Last year, it purchased 5th & Bell, a 192,000-squae-foot office building for $119 million. The building is fully lease to Amazon, and the ground lease has a 50-year term remaining. The six-story property is LEED certified, and it features larges floorplates, outdoor deck, an end-of-trip facility with showers, lockers and bike storage, retail and ample parking. With the Washington 1000 development, Hudson will have a 2 million-square-foot portfolio in this highly desirable submarket.