Newmark announces it has advised on the sale of 1700 Westlake in Seattle, Washington. Known as “The Lake Union Building,” the 90,625-square-foot, Class A building is located near the epicenter of Seattle’s South Lake Union.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Senior Managing Director Michael Moll, Director Jeffrey Hodson and Director Rachel Jones represented the seller, Cairn West. Newmark Senior Managing Director and office leasing expert Cavan O’Keefe also advised on the sale. The Newmark team represented Cairn West through all stages of the marketing, due diligence and sales process. The buyer, The Swig Company, was self- represented.
“Selling a building of this size located directly on Lake Union is a rarity within this submarket today,” said Kucha. “We received significant interest from both domestic and local investors and were delighted to work with The Swig Company on its first acquisition in Seattle, on behalf of Cairn West.”
Hodson added, “The Lake Union Building represents a true creative office jewel box asset. We were fortunate to be able to work on the building’s first disposition since its construction in the 1970’s. With its profitable marina, highly desirable location directly on the waterfront, proximity to Seattle’s premier South Lake Union submarket, plus Cairn West’s significant property modernizations, the opportunity was truly one-of-a-kind.”
The Lake Union Building is ideally positioned to benefit from the increasingly high demand for office space in the Puget Sound’s most highly sought-after submarket. There has been more than 5.75 million square feet of new office space delivered in Lake Union in the past seven years, which has doubled the size of the submarket. Despite this unprecedented growth, the vacancy rate has not reached double digits in over four years, averaging 4.1% since fourth-quarter 2017, according to Newmark Research. Lack of supply continues to exert upward pressure on rents.