LOS ANGELES (February 15, 2024) – Palisade Group (“Palisade”), the real estate investment management firm, and Sabal Investment Holdings (“Sabal”), an investment management firm serving institutional investors across the U.S., today announced the acquisition of 1000 and 1100 Dexter Avenue in Seattle, Washington.

The property is a two-building, Class A office asset totaling 223,233 square feet in Seattle’s South Lake Union submarket, one of the city’s premier urban live-work-play neighborhoods and a top-performing office and life sciences submarket.

Total purchase price for the property is $47,500,000, or $213 psf. The distressed pricing, which is considerably below replacement cost and recent sales transactions in the market, was facilitated by an assumable, low interest rate loan that was restructured as part of the transaction.

“1000 and 1100 Dexter is a rare opportunity to acquire a Class A office campus at a deeply discounted basis with attractive fixed-rate financing,” said Jon Mirkin, managing director of Sabal Investment Holdings. “We are excited to find such a unique opportunity like this in South Lake Union, and we look forward to executing our value-add improvements to the property.”

The deal marks the first acquisition by Palisade, recently founded by three former EQ Office (Blackstone’s US office platform) executives.

Located along Dexter Avenue, 1000 and 1100 Dexter enjoys access to various transportation options, including direct connectivity to Westlake, Eastlake and bike paths for the Fremont commuters, along with proximity to an abundance of walkable amenities and a neighborhood experience.

“We were attracted by the neighborhood location, proximity to Lake Union and its amenities, and the strong existing tenancy in the buildings. We are firm believers in the role of office in the future of work, and we will add creative improvements and services to 1000 and 1100 Dexter that help foster a dynamic office experience and create an environment where employees want to be,” said David Moore, principal at Palisade.

While best known for its technology and life sciences concentration, the South Lake Union submarket is positioned to benefit from tenant migration coming from the central business district due to stronger foot traffic and proximity to a vibrant residential neighborhood. The submarket has been one of the most active areas in the region for office investment sales over the last two years, boasting a Class A office direct vacancy rate of 7.2%.

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairmen Nick Kucha and Michael Moll, Managing Director Rachel Jones, and Associate Director Liam Ogburn represented the sellers, SBC and Stockbridge.

About Sabal Investment Holdings

Sabal Investment Holdings (“Sabal”) is a fully integrated real estate investment manager serving institutional investors across the U.S. Sabal Investment Holdings is headquartered in Irvine, California. A fully-integrated firm, Sabal Investment Holdings identifies, underwrites, structures and closes commercial real estate investment opportunities throughout the capital stack. The firm currently manages over $1.3 billion in assets. Visit www.sabalinvestmentholdings.com.

About Palisade Group

Palisade Group provides real estate investment management services with a focus on value-add investments in lifestyle and gateway submarkets across the U.S. Its principals have decades of experience developing, acquiring, improving, and operating commercial real estate across office, residential, industrial, medical, and mixed-use property types. https://www.palisadegrp.com/