Boeing puts six Seattle-area office buildings up for sale

May 30, 2017 | 0 Comments | Deals

, Marc Stiles

Boeing has put six office buildings in the Puget Sound region up for sale, including the Duwamish Towers, which are shown here. The other four buildings are in Bellevue.

Boeing has put six office buildings in the Puget Sound region up for sale, including the Duwamish Towers, which are shown here. The other four buildings are in Bellevue.

Boeing has put six Puget Sound area office buildings up for sale.

Boeing wants to sell the Duwamish Towers – the two-building Tukwila campus southwest of Boeing Field – and four Bellevue buildings in the Eastgate area.

The buildings total 632,000 square feet. Boeing has not set an asking price, spokeswoman Debby Arkell said Tuesday.

“As part of Boeing’s ongoing efforts to reduce costs and increase our competitiveness, we are exiting some under-utilized office space in the region,” Arkell emailed.

She declined to say how many people work in the buildings but said employees are moving to nearby locations.

Chicago-based Boeing handed out 429 layoff notices to Washington state workers in April. The layoffs are planned for June 23.

The decision to sell comes just six months after voters in the region approved the $53.8 billion Sound Transit 3 measure, which includes around $130 million for the addition of a light rail station near Duwamish Towers (2925 S. 112th St.).

Voters approved the station in 1996, but Sound Transit deferred the project in 2001 to cut costs to finish the light rail line from downtown Seattle to Seattle-Tacoma International Airport.

Two Seattle real estate developers, the late Eugene Horbach and Michael R. Mastro, developed the 375,000-square-foot Duwamish Towers project in 1988. Mastro was one of Seattle’s most successful real estate developers until he was indicted in 2012 for bankruptcy fraud and money laundering and fled to France.

Horbach and Mastro sold Duwamish Towers to Boeing for $54.6 million in 1989, according to public records. King County now assesses the value of the property at $48.35 million.

The four Bellevue buildings were built in the early 1990s. They are on the 3000, 3100 and 3200 blocks of 160th Avenue Southeast, next to a Microsoft-owned campus. Boeing owns three other buildings in this area.

Boeing listed the Bellevue and Tukwila office buildings for sale with Seattle broker Tim O’Keefe of Newmark Grubb Knight Frank.

Boeing will not say how large its office portfolio is in the Puget Sound region. It reported just under 60 million square feet in the U.S., with properties with office space making up roughly two-thirds of the total. Boeing owns most of its property, though it leases some space.

Three years ago, Boeing leased around 500,000 square feet of space on the Eastside.

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