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How a Seattle Building Became 2022’s Biggest Multi-Tenant Deal So Far

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How a Seattle Building Became 2022’s Biggest Multi-Tenant Deal So Far


For Boston Properties, the price of enlargement within the Seattle market was a lot increased than the preliminary buy-in. 

The corporate, one of many largest workplace landlords in the US, accomplished its second acquisition in Seattle final month when it acquired Madison Centre for $730 million, or $960 per sq. foot, from a three way partnership of Barings and Schnitzer West. Newmark’s co-head of U.S. capital markets, Kevin Shannon, brokered the sale, which he referred to as the most important multi-tenant workplace sale within the nation yr thus far.

“The property was stabilized, and there have been lots of people that inquired off-market,” stated Shannon. “The depth of funding capital that chased this asset displays the conviction capital has within the fundamentals of the Seattle workplace market. Workplace-using job progress is phenomenal on this market, and its tech and life science drivers are engaging.”

Boston Properties entered the market final July when it spent $465 million, or $567 per sq. foot, to accumulate Safeco Plaza, a 50-story, 800,000 square-foot tower a block away from Madison Centre.

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“After exploring the Seattle marketplace for fairly a while, we have been thrilled to accumulate Safeco Plaza final yr as our preliminary flag available in the market,” Kelley Lovshin, Boston Properties’ vp of the Seattle area stated in an e mail. “The variety of firms which can be headquartered right here, the optimistic inhabitants progress, and quick access to expertise make Seattle a dynamic and fascinating location.”

The corporate acted like an all-cash purchaser. It funded the Madison Centre acquisition with a one-year, $730 million time period mortgage, however anticipates finally funding the acquisition by way of incremental asset gross sales structured as like-kind exchanges or three way partnership fairness, based on its first-quarter earnings report. Total, the corporate tasks promoting $700 million to $900 million in belongings throughout 2022.

“Debt consumers are being impacted by rates of interest,” Newmark’s Shannon stated. “All-cash consumers are taking benefit to seize an outsized share of offers proper now. They gravitate in the direction of trophy markets and belongings.”

The 37-story Madison Centre was accomplished in 2017 and authorized LEED Platinum by the U.S. Inexperienced Constructing Council. It was Fitwel Viral Response-certified in 2021. At $960 per sq. foot, Shannon estimates the worth at barely under alternative price as building prices on an identical constructing would presently be about $1,000 per sq. foot. Moreover, the constructing was grandfathered in on some constructing codes that present extra financial savings in comparison with new developments. 

Regardless of the Pacific Northwest’s penchant for rain, facilities embody a rooftop deck with panoramic views. Tenants may make the most of communal and personal assembly areas resembling an important room with a three-story fire and a dwelling wall, a convention/coaching heart, a boardroom, and a library. Washington Athletic Membership operates a 5,700-square-foot health heart within the constructing, and Amazon Go runs a cashier-less market on the bottom flooring. The world is fascinating because of glorious entry to highways and public transit, and is adjoining to the long run extensions of the East Hyperlink Mild Rail.

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Along with being main company headquarters for Microsoft, Amazon and Nintendo, Seattle has attracted greater than 100 out-of-town know-how firms which have expanded into town over the previous decade, based on trade tracker Geekwire. 

“Now we have nationwide relationships with many of those purchasers, and we stay up for deepening {our relationships} with them with our enlargement within the Seattle area,” stated Lovshin.

Tenants embody know-how {and professional} service firms resembling leisure agency Hulu, accounting agency E&Y and headquarters for regulation agency Davis Wright Tremaine. On the time of acquisition, it was 93 p.c leased to twenty firms with a weighted common lease time period of seven years.

Madison Centre was accomplished practically a decade after the location was acquired by developer Schnitzer West. The unique workplace plans stalled in 2008 because of the nice recession, however building moved ahead in 2014. The intersection the place the constructing is situated was fully reworked over the previous a number of years.

The close by F5 Tower at 801 Fifth Avenue leased everything of its 516,000-square-foot workplace portion to F5 Networks in 2018 at a beginning price of $40 per sq. foot yearly, which is able to improve to $56.52 per foot by the top of its 14.5-year lease, based on Securities & Alternate Fee filings. South Korean resort model Lotte operates a 189-room resort in that constructing’s decrease flooring.

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Though the Seattle market suffered pandemic-related job losses, it bounced again faster than different coastal markets closely dominated by tech firms resembling San Francisco. Asking charges have been $51 per foot as of the primary quarter within the Seattle CBD submarket the place Madison Centre is situated, based on Newmark’s workplace market report. That’s down by 1.1 p.c from the primary quarter of 2021, however up about 10 p.c from 5 years in the past. Tech employers added 16,000 jobs over the previous two years within the better Seattle space, and the area’s unemployment price dropped under 4 p.c in February 2022 after spiking to 16.6 p.c in April 2020.

With the addition of this constructing, Boston Properties’ portfolio totals about 54 million sq. ft throughout 200 properties in Boston, Los Angeles, New York, San Francisco, Seattle and Washington, D.C. Eleven of these properties are beneath building or being redeveloped.



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Seattle, WA

Seattle Mariners' new identity is resilient and relentless

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Seattle Mariners' new identity is resilient and relentless


At 28-20, winners of 11 of their last 13 series, and with a 3 1/2 game lead in the AL West, the Mariners have been good. Better than expected. Better than most of the teams in the American League. Better offensively than they’ve been in years. Better defensively than they appeared to be when the season began. Better in the bullpen than they were last year. Better depth than we knew.

Seattle Mariners off to MLB-best road start with sharp pitching, timely hitting

The stats tell that story. Your eyes tell that story. At least through the first 48 games, those statements are all but indisputable. And with just six games to go before we get to the one-third mark of the season, it’s probably fair to say that it is no longer “early” in the season.

I don’t know if the Mariners can keep up this pace. I’m not sure if anyone does. But I strongly believe they are succeeding because of two qualities that often describe teams that see high levels of success.

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They are resilient. And they are relentless.

I might not be able to prove either of those statements, but the first one should be easy to see. At one point this week, the team was without eight members of its projected opening day 26-man roster. That includes three members of their starting rotation, always assumed to be the strength of the squad. Sixty percent of the rotation! Thirty-one percent of the roster!

None of it has slowed them down. The “next man up” mentality is alive and well in this clubhouse.

But their resilience has been on display in other ways. They are now 7-1 in deciding “rubber games” of series. They have won five series after dropping the first game. Only once have they lost as many as four games in a row, and they responded almost immediately by winning four straight, on the road, including three against the excellent Padres.

They aren’t phased by late-game deficits. In fact, they have 14 comeback wins this year (tied for second most in baseball behind only the Dodgers), including a few memorable ones against the A’s, Astros and White Sox.

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And it’s funny, but a whole bunch of those comebacks have come from their other great quality: their relentlessness.

The Oxford Dictionary defines relentless as “oppressively constant; incessant,” and that’s how the Mariners must appear to opponents. We expected that would be true of their rotation. It would certainly seem oppressive to have to face any combination of their top five starters in a single series and deal with the incessant pounding of the strike zone with a steady diet of fastballs and nasty breaking balls.

There was a sense that the return of Matt Brash, the return to form of Gabe Speier and the continued emergence of Andrés Muñoz would give the late innings a similar feel.

But I’d be lying if I told you I expected a relentless offense. Yet, it has been exactly that, thanks both to the approach and the depth of the lineup.

On most nights, the Mariners can offer a lineup with seven or eight players with an OPS+ over 100 (which is league average). Yes, that’s insane. There’s Jorge Polanco (177), Cal Raleigh (168), Dylan Moore (149), Leo Rivas (139), J.P. Crawford (132), Randy Arozarena (129), Julio Rodríguez (111), and Rowdy Tellez (107). Ben Williamson, Miles Mastrobuoni and Leody Taveras are not at that level, but all three have battled with competitive at-bats and contributed directly to huge wins.

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And that is the other way in which they have been relentless: they simply haven’t given away many at-bats. There is no precise way to define an at-bat that was given away, but you know it when you see it. It can be characterized by chasing lots of pitches outside the zone, popping up, or rolling over on ground balls early in the count. What had become an unfortunate hallmark of this offense for the last two seasons has (thankfully) disappeared.

They take down ace pitchers, having won games against Tarik Skubal, Hunter Brown, Garrett Crochet, Michael King, Nathan Eovaldi and Max Fried. They’ve hung around in games long enough to put pressure on relievers. And even on nights when they haven’t scored much, they have offered a sense of hope that runs are coming because they haven’t given up and continue to work hard.

The Mariners may not maintain their currently pace of 95 wins. But they are sure developing the characteristics of a team that can do that and more. If these personality traits continue to define them, there should be plenty of meaningful and fun baseball ahead.

Seattle Mariners coverage

• M’s now can show Astros – and the baseball world – they’re for real
• Mariners win national anthem standoff against White Sox
• George Kirby’s return to Seattle Mariners from IL is now set
• May surge: Five top Mariners prospects are red-hot at the plate
• Seattle Mariners switch-pitcher Cijntje wins minor league award

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Why former GM is 'big fan' of Seattle Seahawks' QB approach

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Why former GM is 'big fan' of Seattle Seahawks' QB approach


Finding a franchise quarterback is arguably the most important – and perhaps most difficult – task for any NFL general manager.

That’s why one former GM loves that the Seattle Seahawks essentially gave themselves two bites at the apple this offseason.

Which NFC West team has brightest future? An insider’s take

The Seahawks underwent a major shift at quarterback in March, when they traded away 34-year-old veteran Geno Smith and then replaced him by signing 27-year-old Sam Darnold to a team-friendly three-year, $100.5 million deal.

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But they didn’t stop there. Seahawks GM John Schneider also spent a third-round pick on Alabama dual-threat QB Jalen Milroe in April’s NFL Draft, giving the team a longer-term developmental option at the position.

Former Las Vegas Raiders GM Mike Mayock praised Schneider’s approach last week during an appearance on Seattle Sports’ Brock and Salk.

“Philosophically, I love what they did, because very few NFL teams are intentional about the quarterback position, in my opinion, the way they should be,” said Mayock, who also spent 15 years as a draft analyst for NFL Network.

“So basically, it’s two moves. They go out and they trade Geno at age 34 (and then sign) a 27-year-old Sam Darnold. They pay Sam a reasonable starting salary that they can effectively get out of after two years for plus or minus $65 million and a reasonable dead cap hit. And then they draft a developmental quarterback behind him. So there’s a plan A and a plan B here.”

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In signing Darnold, the Seahawks are hoping the former first-round pick can build on his breakout 2024 campaign with the Minnesota Vikings, which revived his once-disappointing career. But at the same time, as Mayock mentioned, the Seahawks structured Darnold’s contract in a way that allows them to move on after one or two years if he doesn’t pan out.

And in Milroe, the Seahawks took a shot at a rare athletic talent. Milroe still needs a plenty of polishing as a passer, but with big-time speed packed into a powerful 6-foot-2, 217-pound frame, he has a tantalizing skill set as a runner.

“I love the fact that, you know, let’s root for Sam Darnold to be who he was last year and continue to get better, but let’s also develop this young kid who had the best physical traits of any quarterback in this draft,” Mayock said. “And does (Milroe) need 10,000 reps and time on task? Absolutely. But (in the meantime), Darnold is there and can play at a highly competent level.

“I just think that John doubled down on it – not unlike signing Matt Flynn years ago and drafting Russell Wilson in the third round. I’m just a big fan of what John did there.”

Listen to the full conversation with Mike Mayock at this link or in the audio player near the top of this story. Tune in to Brock and Salk weekdays from 6 to 10 a.m. or find the podcast on the Seattle Sports app.

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More on the Seattle Seahawks

• Watch: Seattle Seahawks take batting practice at T-Mobile Park
• Seattle Seahawks sign undrafted rookie WR/kick returner
• Huard: What Brock Purdy has that Sam Darnold still needs
• Brock and Salk disagree on Seattle Seahawks rookie QB Jalen Milroe
• Ranking the five toughest games on Seattle Seahawks’ schedule





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Seattle Mariners: Casey Lawrence returns, local product DFA

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Seattle Mariners: Casey Lawrence returns, local product DFA


For the fourth time already this season, Casey Lawrence is back with the Seattle Mariners.

May surge: Five top Mariners prospects are red-hot at the plate

The team recalled the veteran right-handed pitcher from the Triple-A Tacoma Rainiers on Tuesday afternoon ahead of the second game of a three-game series in Chicago against the White Sox. Lawrence, 37, has made headlines this season because he’s been designated for assignment four times – thrice by the Mariners, and once by Toronto.

Lawrence is expected to pitch the bulk of Tuesday’s game against the White Sox after reliever Casey Legumina starts as an opener, per Seattle Sports’ Shannon Drayer. The Mariners signed Lawrence back on May 7, five days after he was granted free agency by the Blue Bays.

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The Mariners optioned left-handed pitcher Jhonathan Díaz to Tacoma to make room for Lawrence on the active roster. Seattle also designated corner infielder Austin Shenton for assignment to make room on the 40-man roster.

Shenton, a native of Washington state and Bellingham High School alum, was originally drafted by the Mariners in the fifth round of the 2019 MLB Draft and made his MLB debut with Tampa Bay last year. The 27 year old returned to the Mariners organization over the offseason in a trade from Tampa Bay for cash after the Rays designated him for assignment.

Díaz, 28, was recalled from Triple-A by the Mariners on May 14 but did not pitch in a game. He has appeared in one game for Seattle this season and seven with the Rainiers.

Lawrence has pitched in four games with Seattle and once with the Blue Jays this season, allowing seven earned runs over 12 2/3 innings for a 4.97 ERA. He also has a 4.91 ERA over four appearances (14 2/3 innings) with Tacoma.

Lawrence originally played with the Mariners in 2017. He is set to become the sixth player in team history to have three separate tenures with Seattle, joining Mike Blowers, Raúl Ibañez, Norm Charlton, Roenis Elías and Jeff Nelson.

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Game 2 of the Mariners’ series against the White Sox is set for a 4:40 p.m. Tuesday first pitch. Radio coverage on Seattle Sports will begin at 3:30 with the pregame show. However, it’s been a rainy day in Chicago, so there’s a good chance the game is postponed.

More on the Seattle Mariners

• Mariners switch-pitcher Cijntje wins minor league award
• ESPN’s Passan: Mariners in great spot with expected pitching returns
• Savvy play by Seattle Mariners’ Ben Williamson gets national attention
• Drayer: How top M’s pitching prospects Cijntje, Sloan are opening eyes
• Brock & Salk: Seattle Mariners leading AL West no longer feels surprising





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