Regence Blue Shield has sold its 15-story Denny Triangle headquarters building for $76.5 million and will lease back about 30 percent of the office space.
Regence Blue Shield has sold its 15-story Denny Triangle headquarters building for $76.5 million and will lease back about 30 percent of the office space, brokers representing the health insurer said Tuesday.
The new owner is a joint venture of Prudential Real Estate Investors and Talon Private Capital of Kirkland, a two-year-old real-estate investment company.
Regence put the building at Ninth Avenue and Howell Street up for sale this spring, saying its space needs had declined and it now made more sense to lease than own. The building, called 1800 Ninth Avenue, is 60 percent vacant, said Stuart Williams of brokerage Jones Lang LaSalle, which marketed the property for Regence.
The insurer built the tower in 1990, and has been its principal occupant since.
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A Regence spokeswoman said in May that the nonprofit put the building up for sale after concluding it wouldn’t be cost-effective to upgrade it to attract new tenants.
Talon principals were not immediately available to discuss the new owner’s plans for the 313,000-square-foot building.
The tower’s sale price breaks down to about $245 per square foot. That’s significantly less than what nearby downtown office buildings, including 1918 Eighth, 818 Stewart and Westlake Center’s office tower, fetched earlier this year.
Those buildings, however, are mostly leased.
Eric Pryne: 206-464-2231 or firstname.lastname@example.org