Historic building in downtown Seattle sells for $580m

Historic building in downtown Seattle sells for $580m
The art-deco style building was constructed in 1929 Image: Courtesy of KKR

Global investment firm KKR and Seattle-based commercial real estate firm Urban Renaissance Group LLC have acquired 300 Pine, a 770,000 sq. ft., eight-story mixed-use historic building in downtown Seattle.

The iconic building in Seattle sold for $580 million, Bloomberg reported, citing a person with knowledge of the deal.

“Investing in this historic building marks our fourth investment in the Puget Sound Region,” said Justin Pattner, KKR’s Head of Real Estate Equity in the Americas.

“This is an attractive market poised for long-term growth driven by its strong and growing workforce, attractive cost of living, and simply being a highly desirable place to live with a great quality of life. 300 Pine is an important part of Seattle’s community and we are looking forward to bringing it to its full potential,” he added.

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”Located on a full city block between 3rd Ave and 4th Ave in the heart of Seattle’s retail core, the mixed-use iconic building with its historic façade will feature 85,000 sq. ft. renovated ground-floor retail designed to accommodate retail flagship stores, along with a new stunning 4th Avenue entrance to access the 682,000 sq. ft. of commercial office space currently fully-leased to a single tenant,” said KKR in a statement.

The office portion will feature 80,000 sq. ft. floorplates, seismic retrofitting, and over twenty skylights including two light wells providing additional light for the top two floors.

“We believe in the strong potential of unique and iconic buildings that serve large corporate users with long-term leases and we are very excited to invest in 300 Pine as part of our Prime Single Tenant strategy. We have acquired over ten million square feet of similarly situated buildings recently and the Puget Sound Region has quickly become a large part of that strategy, given our belief in the region’s attractive fundamentals,” added Billy Butcher, Chief Operating Officer of KKR’s Global Real Estate business.

“Originally constructed as a monument to Seattle’s retail strength in the Pacific Northwest, this beautiful historic building remains a symbol of our city’s strength and resilience,” said Urban Renaissance Group CEO Patrick Callahan. “We’re thrilled about this transaction with KKR and excited about the future of this building. This acquisition reflects our mutual confidence in the region and specifically in downtown Seattle, where we look forward to strengthening the heart of Seattle’s retail core.”

Originally home to Seattle’s beloved Bon Marché department store, the art-deco style building was constructed in 1929 with four additional stories added in 1955. Between 2015 and 2017, then-owner Macy’s sold the upper six levels for office space, and in 2020 the department store closed.

The renovated landmark building will feature a timeless façade, a 20,000 sq. ft. rooftop deck, one-of-a-kind interiors, and 15-foot tall ceilings with ornate colonnades and dramatic architectural features that originate from the 1920’s era department stores. The historic building elements will be reinvigorated with a contemporary plan that connects multiple program elements though a central common area.

The new ground-level retail space, conveniently located above the underground Westlake Light Rail Station with bus stops at the west (3rd Ave) and east (4th Ave) entrances, will be named ‘The Bon Marché Collective’ in honor of the building’s history. It will offer retail suites for lease ranging from approximately 3,000 sq. ft. to 16,600 sq. ft. with additional potential for a ground-floor grand food hall. Victrola Coffee currently occupies retail space on 3rd Ave and will remain at the building’s southwest corner.