Newmark Closes Sale of 1000 & 1100 Dexter in South Lake Union, Washington

February 16, 2024 12:00 PM

Photo Credit to Kristi Galbraith of Red Studio Inc.

Newmark announces the sale of 1000 & 1100 Dexter, a two-building, Class A office asset totaling 223,233 square feet in Seattle’s South Lake Union, a top-performing office and life sciences submarket. The asset sold for an undisclosed amount.

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairmen Nick Kucha and Michael Moll, Managing Director Rachel Jones and Associate Director Liam Ogburn, in cooperation with Executive Managing Director Jesse Ottele and Senior Managing Directors Cavan O’Keefe and Daniel Seger, represented the sellers, SBC and Stockbridge. The buyer was an affiliate of Palisade Group and Sabal Investment Holdings (“Sabal”).

“1000 & 1100 Dexter presented a rare opportunity to acquire a Class A office building at an attractive basis, with downside protection via exit optionality in Seattle’s top performing urban submarket,” said Kucha.

Situated a block from Lake Union, one of the country’s premier urban live-work-play neighborhoods, 1000 & 1100 Dexter offers optionality with its potential for a mixed-use development given the connecting parking garage located off 8^th Avenue North. Located along Dexter Avenue, the property is ideally situated between two of Meta’s Seattle office locations and presents access to various transportation options, including direct connectivity to Westlake, Eastlake and bike paths for the Fremont commuters, along with proximity to an abundance of walkable amenities.

“The strong interest we received from both institutional and private buyers was a result of capital’s fundamental belief in the South Lake Union office market as well as the ability to assume an in-place loan at an incredibly low fixed rate with term remaining,” added Moll.

While best known for its technology and life sciences concentration, the South Lake Union submarket is positioned to benefit from tenant migration from the CBD. The submarket has been one of the most active areas in the region for office investment sales over the last two years, boasting a Class A office direct vacancy rate of 7.2%, according to Newmark Research.

[1] Since February 2023
[2] according to Costar data

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of September 30, 2023, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with over 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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