Case Studies

701 Dexter

Our experience has shown that successfully working through intricate deals in one setting often leads to opportunities in new settings, as brokers representing owners with complex objectives feel confident in bringing us to the table.

Our experience has shown that successfully working through intricate deals in one setting often leads to opportunities in new settings, as brokers representing owners with complex objectives feel confident in bringing us to the table. In 2015, back-to-back successful closings by our team —  one a leasehold interest in need of restructuring, and the other a nearby 180,000 square foot Class B user-building that was being vacated —  caught the attention of brokerage group. They approached us about helping a client of theirs who was considering an exit, but was conflicted by the tax implications.

701 Dexter is a six-story office building in Seattle's South Lake Union neighborhood.

701 Dexter was acquired off-market—just like 75% of our other acquisitions.

How we source deals

701 Dexter sits prominently on the corner of the block in the Lake Union neighborhood

We were interested in their asset’s South Lake Union location and repositioning potential (which was enriched by a recent up-zone). Over the course of a six-month negotiation, we were able to collaborate with the owners to structure an off-market installment sale that addressed their tax concerns and avoided loan prepayment while also enhancing our IRR via deferral of equity payments. Our inclination and commitment to resolving the sellers’ roadblocks made it possible for us to purchase the property for $221 per square foot, a significant discount to average submarket trades in excess of $500 per square foot at the time.