Vulcan Real Estate Completes Record-Setting Sale of Two Lakefront Blocks in Seattle

Stoel Rives represented Vulcan Real Estate in the $802 million sale to Deka Immobilien, a German investor, of two lakefront blocks in Seattle’s South Lake Union neighborhood. The sale price for the 635,000-square-foot property set a per-square-foot record for a Seattle office asset. Deka Immobilien was the winning bidder for both properties, while Vulcan retains ownership of the residential towers.

The lakefront blocks comprise two full city blocks, which are fully developed with two six-story office buildings with residential towers above each building. The commercial portions of the blocks, which are leased to Google, were offered for sale in September 2021.

The Stoel Rives deal team, led by partners Joseph Delaney and Emily Kelly, assisted Vulcan in the acquisition of the blocks over a period of more than 20 years, as well as the leasing, financing, development, construction, and ultimate disposition of the commercial portion of the blocks.

Vulcan Real Estate, a Seattle-based real estate investment firm, has led redevelopment in the South Lake Union neighborhood with the construction of 38 projects. Vulcan Real Estate directs all real estate investment activities for the Vale Group LLC, a Paul G. Allen company. Since 2000, Vulcan Real Estate has delivered $7.4 billion in assets in over 50 projects comprising more than 10 million square feet of commercial space and over 4,000 residential units. Additionally, its robust development pipeline consists of $2.8 billion of new commercial and multifamily projects in the Seattle and Eastside markets.