Exchange Building

Seattle, Washington

Historical Transaction
NRSF: 295,525
Total Capital: $54.5 million
Equity Invested: $19.1 million
Status: Sold
Realized Multiple: 2.4x
Realized IRR: 51%

Exchange Building is a 23-story office tower (“Exchange”) located in the Central Business District of Seattle. Originally designed for the Seattle Stock Exchange, the building was restored to its original grandeur and has been fully modernized and refurbished to the highest standards. Approximately $15.0 million was spent by prior ownership to substantially upgrade major building systems, clean and re-seal the exterior façade, and update the common areas. The building’s location provides convenient access to the city’s financial center, the Puget Sound waterfront, and the vibrant Pioneer Square historical district. Upon acquisition in February 2005, total vacancy for the Seattle CBD was just over 14.0% with a direct vacancy rate less than 10%.


  • Off-market transaction – with major renovation and capital improvements commenced shortly before acquisition, repositioning needed to be completed and the property marketed to new tenants.
  • Opportunity to lease then vacant upper floors at increased rents given their unobstructed views of Elliott Bay and the city skyline.
  • Renew major tenant (King County) with a near term lease expiration.

Value Enhancement Strategy

  • Following extensive market reconnaissance indicating that sublease space was absorbing quickly, held firm on rental rates, and captured a premium rents throughout lease-up.
  • Continued to focus on diversification of tenant mix and retention of such tenants.
  • Renewed major tenant (King County) with lease for lower floors expiring 15 months after acquisition.