A 16-story Denny Triangle building that landed Amazon.com as its anchor tenant was sold this week for $150 million, nearly double what it traded for just two years ago.
An affiliate of Chicago-based Heitman, a private real-estate investment management firm, bought 1800 Ninth Ave. from a joint venture of Prudential Real Estate Investors and Talon Private Capital of Kirkland, records show. King County records show the 312,700-square-foot building and an underground parking garage were constructed in 1990.
This week’s sale, which works out to about $481 a square foot, is a turnaround success for Prudential and Talon,
Their partnership bought the building in December 2011 from Regence BlueShield for $76.5 million, or about $245 a square foot, when it was 60 percent vacant.
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When Regence put up its headquarters for sale in spring 2011, the nonprofit said it had concluded it wouldn’t be cost-effective to upgrade it to attract new tenants.
That spring, Seattle-based Amazon moved out of its previous headquarters on Beacon Hill and into office buildings in South Lake Union owned by Vulcan.
Amazon’s explosive growth in the past two years has reshaped the market in South Lake Union and Denny Triangle. In addition to constructing its own high-rise Denny Triangle campus, Amazon eases space nearby, such as in Metropolitan Park North and 202 Westlake.
This year, 1800 Ninth underwent nearly $6 million in building upgrades — including a new lobby, fitness center and conference center — and about $27 million in tenant improvements, according to an offering document for the property.
Earlier this year, Amazon moved into 1800 Ninth under a lease in which it will occupy more than 60 percent of the building through at least 2024.
Regence continues to occupy about 30 percent of the building.
According to OfficeSpace.com, the building’s vacancy rate is under 3 percent.
Sanjay Bhatt: 206-464-3103 or firstname.lastname@example.org On Twitter @sbhatt