Case Studies

Real estate investment case study: The Cobb Building adaptive reuse

Highly complex redevelopment delivers iconic downtown asset.

Unico's adaptive reuse of an obsolete historical medical-dental office building into luxury residential with ground retail led to immediate success

The Cobb was the first dedicated medical-dental building built west of the Mississippi River and, upon its completion in 1910, provided offices for more than 200 physicians. Though well located and architecturally significant, the Cobb Building had become functionally obsolete and required a substantial makeover in order to stay competitive in the downtown Seattle landscape. The office sector was underperforming while the evolution of Seattle to a “24/7” downtown left the residential market underserved. Lastly, the necessary seismic upgrades were so pervasive that they required looking at the building anew, while the architectural and historic details were thought to be better appreciated by residents than businesses.

Despite the inherent complexities with historic renovations and construction logistics in an urban environment, Unico was able to deliver the $36 million project at $2 million below budget

More Development Stories

An apartment at the Cobb that overlooks Elliott Bay, with a couple talking outside on the balcony.

More About the Cobb

 

Committed to ensuring that the significant re-investment would properly position the Cobb for the coming decades, in 2005 Unico embarked on a pioneering vision of converting the property to a high-end rental residence with retail that was fitting of its central location. The redevelopment process was an intricate combination of preservation board guidelines (the building is now listed on National Register of Historic Places) and historic tax credit financing. Despite the inherent complexities with historic renovations and construction logistics in an urban environment, Unico was able to deliver the $36 million project at $2 million below budget while executing on the initial vision of enduring, timeless quality.

The units were 100% leased just three months after opening at rents that gapped the market by 20% over the Cobb’s closest competitor. Additionally, the Cobb’s ground-breaking success served as evidence to justify the most recent wave of residential rental projects launched in Seattle’s downtown. Lastly, the retail portion of the building attracted The Capital Grille, an upscale steakhouse for its regional flagship location, and an urban grocer to service neighboring workers and burgeoning downtown residents.