April 27, 2022 9:00 AM
Newmark announces it has completed the $126.75 million sale of the Loyal Inn Block, a 1.6-acre redevelopment site located at 2300 Seventh Avenue North and 2301 Eighth Avenue in Seattle, Washington. The property traded in an off-market transaction which had multiple bidders from Clise Properties, Inc., a family-owned and -operated Seattle real estate developer, to BioMed Realty, a leading life science development company. Newmark Co-Head of U.S. Capital Markets Kevin Shannon and Executive Managing Directors Ken White and Tim O’Keefe represented the seller in the transaction.
The parcel is bounded by Denny Way to the north, 8th Avenue to the northeast, Bell Street to the southeast, 7th Avenue to the southwest and Dexter Avenue to the west. The site is currently improved by a 91-key hospitality building that was formerly home to The Loyal Inn, a 22,764-square-foot office/retail building, and parking stalls serving the two properties. BioMed Realty’s plans for redevelopment include a state-of-the-art life sciences facility.
“This site generated immense investor interest due to its prime location, significant scale and the lucrative opportunity to capture unmet demand for life science facilities,” said Shannon.
The property is directly adjacent to the picturesque Denny Park in Seattle’s Denny Regrade submarket, just steps from Amazon’s world headquarters. In addition to Amazon, the area is surrounded by economic and life science demand drivers including The Fred Hutchinson Cancer Research Center, Seattle Cancer Alliance, Swedish Hospital, Virginia Mason, Lake Union, University of Washington, Seattle University, PATH, Microsoft, Boeing and the Melinda and Bill Gates Foundation. The location also offers easy access to downtown Seattle’s numerous shopping, dining and entertainment amenities.
“With the abundance of tech and life science demand drivers in Seattle, the area has a significant and growing need for additional life science facilities,” said O’Keefe. “We look forward to seeing BioMed’s development plans unfold.”
Life science venture capital funding totaled a record $43.3 billion in 2021, according to a study from Newmark Research. Abundant fund dry powder and fundraising activity as well as continued disruption to property types such as hospitality and conventional office have fueled the increase in capital into life science real estate. This trend, combined with 2022 deliveries of newly developed and renovated life science product in the top supply-constrained markets, is expected to keep life science investment at higher levels compared with pre-pandemic years.
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. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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