December 22, 2015

After rehabs, two downtown office towers almost full again

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Wells Fargo Center

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1111 Third

Ivanhoe Cambridge and Callahan Capital Properties said they recently secured more than 400,000 square feet of new leases and renewals for space in Wells Fargo Center and 1111 Third. The firms own both downtown Seattle high rises.

Wells Fargo is now more than 95 percent leased, and 1111 Third is close to 90 percent, the firms said in a press release.

In the biggest transaction, electronic signature company DocuSign has committed to taking 118,830 square feet in Wells Fargo Center at 999 Third Ave. Shap Roder, Brian Biege and Tim O'Keefe of CBRE represented DocuSign.

Hillis Clark Martin & Peterson law firm leased 31,000 square feet in Wells Fargo Center, and the assisted living company Leisure Care leased 25,196 square feet. Brian Hayden and Parker Ferguson of Flinn Ferguson represented HCMP, and Pete Hollomon and Tim Owens of CBRE represented Leisure Care.

Moss Adams renewed its lease for 77,274 square feet in Wells Fargo Center. Michael Dash and Joe Steele of CBRE represented Moss Adams.

At 1111 Third, Community Health Plan of Washington leased 91,816 square feet. A “global infrastructure firm” that was not named leased 55,000 square feet. A report in Puget Sound Business Journal said the tenant is Aecom.

Laura Ford, Greg Inglin and Connor McClain of Colliers International represented Ivanhoe Cambridge and Callahan on Wells Fargo Center, and Lisa Stewart and Jim Allison of Urbis Partners are the brokers for 1111 Third.

Ivanhoe Cambridge and Callahan bought the 47-story, 984,000-square-foot Wells Fargo Center for $390 million in June 2013. About 18 months later, they bought the 34-story, 572,500-square-foot 1111 Third for $220 million.

Wells Fargo Center was more than 33 percent vacant in late 2012, and as recently as June more than 20 percent of the office space still was vacant, according to officespace.com. In March 2013, 1111 Third was more than 62 percent vacant, and in September 2014 it was barely half full.

The firms updated both buildings. Wells Fargo Center got a new lobby, business center with seating for 80 people, a tenant lounge and a gym.

Ivanhoe Cambridge and Callahan Capital say they own about 13 percent of downtown Seattle's Class A office space. In addition to Wells Fargo Center and 1111 Third, they also own Second & Spring and U.S. Bank Centre.