The investment group ընկերությունը the real estate company together will pay almost $ 600 million for the building in downtown Seattle, downtown Macy, which today dominates the six floors of Amazon offices.
KKR Investment Company Urban Seattle-based commercial real estate company Urban Renaissance Group announced the deal on Thursday. A source close to the deal said the building on Third Avenue, Payne Street, sold for about $ 580 million. Sales records were not immediately available from the district.
Macy’s closed its city store early last year.
The sale of the historic building comes at a time when the city center has been hit hard by an epidemic, making a huge transition to remote work. Prior to COVID-19, the city center accounted for more than half of the city’s jobs և tax revenues. Online retailers like Amazon have also destroyed the brick-and-mortar retail business.
Amazon has announced that it will continue to lease those six floors, which is enough space for about 2,000 employees. Although some tech companies are moving to more remote jobs, the tech giant said this week that it expects employees to return to their offices by the fall.
KKR և Urban Renaissance Group reported that the lower floors of the Macy building “would be designed to accommodate leading retailers” but found no tenants.
The deal “reflects our mutual trust in the region, particularly in downtown Seattle, where we look forward to strengthening Seattle’s retail core,” said Patrick Calalan, CEO of Urban Renaissance Group.
The city’s main attraction was the leading Bon Marché store for decades, followed by Bon-Macy’s և Macy’s.
The building will now have a “timeless façade, a 20,000-square-foot deck, a unique interior, 15-foot ceilings with ornate columns, and dramatic architectural features from 1920s department stores,” according to KKR և Urban Renaissance Group.
The building’s newest retail replica, dubbed The Bon Marché Collective, will include rental space from 3,000 square feet to 600 16,600 square feet և possibly a dining hall.
Victrola Coffee, located on the corner of Third Pine և Pine Street, is expected to remain in the area.