October 9, 2020

Selig finishes redo of historic Federal Reserve Bank building

Photo from Martin Selig Real Estate [enlarge]

The Seattle studio of Perkins and Will designed the renovation.

Martin Selig Real Estate said yesterday it has completed the modernization of the Federal Reserve Bank building at 1015 Second Ave. in Seattle, and expects the entire office project to be done late this year.

The Seattle developer said it does not yet have a tenant for the building, which was originally constructed in 1950 for the Federal Reserve Bank and has been refurbished and expanded to 13 stories with about 200,000 square feet of Class A office space. Some work still remains on the street level, particularly the sidewalks, and the mechanical systems need testing.

The Seattle studio of global architecture firm Perkins and Will designed the renovation. It includes two levels below grade and four levels above grade plus the addition of seven new floors encased in a “striking glass jewel box” constructed above the historic building, the firm said. The floor-to-ceiling glass in the building and its outdoor terraces offer views of Puget Sound and the city.

Lease Crutcher Lewis is the contractor. JLL is the leasing agent.

Martin Selig, founder of Martin Selig Real Estate, said it is a very attractive piece of real estate with its rich history and prime central business district location.

“We've gone to great lengths to preserve the architectural elements and balanced them with modern amenities to appeal to today's office tenant,” he said. “It is a privilege not only to have this iconic property in our portfolio but to continue telling its story for generations to come.”

The building is being completed in a tough market.

Oscar Oliveira, a principal at the Broderick Group, said the Seattle market has been at “somewhat of a standstill” since mid-March due to the COVID-19 pandemic, with few tenants touring buildings and sublease space increasing. According to Broderick Group's Seattle office overview, vacancy is 5.6% in the 62.22 million-square-foot market, compared to 4.6% in the same period last year.

Oliveira said that recently there's been some uptick in tenant tours and in firms occupying their offices, but, “we still have a little ways to go to get through it all.”

In fact the firm expects leasing growth for Class A office space in Seattle to be -1.1%, -2.2% and 1.3%, respectively, for 2020, 2021 and 2022.

Oliveira said he toured the modernized Federal Reserve Bank building, a project the developer did on spec, and was impressed with Perkins and Will's design and Selig's vision. That includes the way space is laid out, the multiple decks and the revamp of the basement with historical elements. “It's very well designed” and in a strong location, he said.

The leasing broker said the reasons why Seattle is an attractive market “for the most part are still there.” ... “We've got to get through the city council issues and some of the taxation issues that the city council has put in place,” he said. Other than that, Seattle “is still a strong market.”

William Bain Sr., a founder of NBBJ in Seattle, was the original architect on the Federal Reserve Bank building, a Seattle landmark which is also listed on the National Register of Historic Places.

The building was originally developed as the workplace for notable government tenants, including the Federal Reserve Bank and the FBI, and is steeped in historic details — from a below-grade shooting range to two massive bank vaults within the heavily reinforced steel structure, Selig said. The 60,000-pound steel vault doors were restored.

The developer said the restored historic lobby has refurbished original finishes, including marble walls, bronze elevator doors and travertine floors, creating an elegant period feel at the entry to the building. All new mechanical, electrical and plumbing systems, including elevators, were installed and structural and seismic upgrades were done to strengthen the historic building and cladding and to support the vertical addition.

Exterior amenities include an outdoor plaza where the addition meets the existing structure, a rooftop deck, a landscaped plaza with public art and seating areas, as well as new skylights to bring daylight to the tenant spaces below the plaza level.

There are 25 parking stalls below ground and Martin Selig Real Estate said ample parking is available across the street at 1000 2nd Ave., which it owns.

The building is near Benaroya Hall, Seattle Art Museum, City Hall, Seattle Justice Center and the Central Library, as well as retail, dining, light rail, Metro bus stations and the ferry terminal.

Martin Selig Real Estate has more than 30 office properties in Seattle and projects underway, and works with tenants from a variety of sectors. Perkins and Will has designed four completed buildings for it, and the firms have seven more projects underway.