Saturday, October 6, 2012

Amazon Buys Its 11-Building Campus for $1.16 Billion in Seattle’s Biggest-Ever Deal

Jeff Bezos
 SEATTLE, WA -- In the biggest commercial real estate deal in Seattle’s history, entrepreneur Jeff Bezos’ says it has contracted to buy its 11-building South Lake Union headquarters complex from Paul Allen’s Vulcan Real Estate company for $1.16 billion.

That works out to $644 per square foot for the 1.8 million-square-foot property. Buyer and seller said they expect the deal to close before the end of the year.

Vulcan, owned by Microsoft co-founder Paul Allen, began building the complex in early 2008 after Amazon signed leases extending into the 2020s. The last building is nearly complete.

The Seattle Times reports Vulcan put the complex up for sale in late August. Vulcan wanted to rebalance its investment portfolio and free up capital for more development in South Lake Union.

Paul Allen
If Amazon had not made an offer for all 11 buildings, Vulcan probably would have sold the nine new and two renovated historic structures to six separate buyers, according to the Seattle Times.

The $1.16 billion price tag is about 65 percent more than the $700 million Vulcan reportedly paid to design and build the complex.

Amazon should have no trouble paying for the buildings. It held $5 billion in cash and marketable securities at the end of June, the Seattle Times reported.