Sabal JV Pays $48M for Seattle Office Asset

February 16, 2024

A $55 million loan assumption was also part of the deal.

A joint venture between Sabal Investment Holdings and Palisade Group has acquired 1000 & 1100 Dexter Ave., a two-building office campus in Seattle, for $47.5 million. SBC and Stockbridge sold the 223,233-square-foot asset with the assistance of Newmark.

In 2021, the property became subject to a $55 million note from The Hartford Financial Services Group, according to CommercialEdge data. Through the loan assumption, the buyers managed to acquire the property at roughly $213 per square foot, below the current market rates.

The five-story campus features 23,000-square-foot floorplates and a parking ratio of 2.7 spaces per 1,000 square feet. Built in 1996, 1000 Dexter Ave. was completely upgraded in 2003, while 1100 Dexter Ave. was completed in 1998 and underwent a cosmetic renovation in 2016. Amenities encompass showers, lockers, bike storage and outdoor decks. Tenants include CrossCountry Mortgage, Riviera Finance and Genemod, the same source shows.

Located near Aurora Avenue North, the campus is less than 2 miles from downtown Seattle. The office buildings are also within walking distance of the Museum of History & Industry and the Space Needle, as well as directly connected to multiple bike paths.

Seattle office market’s mixed performance

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Managing Director Rachel Jones and Associate Director Liam Ogburn, along with Vice Chairmen Nick Kucha and Michael Moll, represented SBC and Stockbridge in the transaction.

Throughout 2023, the Seattle office market registered $226 million in investments, at a per-square-foot price of $267 as of December, considerably above the national average of $196, according to a recent CommercialEdge report. However, the vacancy rate in the metro stood at 22.5 percent, up 4.1 percent year-over-year and above the national figure of 18.3 percent.