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October 16, 2015

Here's what this new developer has in store

Puget Sound Business Journal

Marc Stiles

When it comes to building office space, timing is almost as important as location. One Connecticut company entered the Seattle real estate race has both of those things going for it.

Starwood Capital Group on Oct. 9 paid $65 million for the top four floors of the downtown Macy's store and announced plans to quickly convert the space into 300,000 square feet of offices.

The move comes at a time when 18 office projects totaling nearly 7.4 million square feet already are under construction, according to a report by brokerage Kidder Mathews. While 70 percent of this space has been preleased, that still leaves 2.2 million square feet looking for renters.

Starwood entered the derby late, but elbowed its way to the head of the pack by acquiring a completed building with something tenants like: expansive floors. In fact the Macy's building has the largest floor plates available for lease downtown, according to Starwood. It also occupies a prime downtown Seattle location - the corner of Fourth Avenue and Pine Street.

The company said construction on the conversion will begin shortly with space ready for rent in the fourth quarter of 2016, just ahead of some competing projects.

Macy's, meanwhile, will continue retail operations during construction.

For the full story, go to Puget Sound Business Journal.

© 2015 American City Business Journals. All rights reserved.

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