Seattle’s office market has seen a string of major transactions over the past few years, in particular as areas such as South Lake Union have defined themselves as the next big technology destinations. The investor response is so positive that even companies previously focused on residential assets are now eyeing opportunities in the office sector. A case in point is the recent acquisition of the Dexter Horton building by traditional multifamily developer Gerding Edlen.
The office building was acquired for $76.6 million from LaSalle Investment Management, according to The Puget Sound Business Journal; LaSalle had held the asset since 2006. The 1922-built Dexter Horton building features 15 floors of commercial space, each of which features between 17,000 and 24,000 leasable square feet. The building, named after the entrepreneur responsible for the city’s first bank, underwent an extensive, $34 million renovation between 2002 and 2006. At the time of the transaction, it had an occupancy rate of approximately 90 percent.
Mainly dealing with redeveloping properties into multifamily or mixed-use projects, Gerding Edlen is responsible for some of the most representative projects in Portland’s Pearl District, such as the Brewery Blocks redevelopment. The company is set to kickstart a renovation process of its own at the Dexter Horton building, with its sights set on turning the venue into a viable contender for potential creative office tenants. Gerding Edlen has yet to choose a construction company to handle the reimaging process for the building.
Image courtesy of dexterhortonbuilding.com