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| Jeff Bezos |
SEATTLE, WA -- In the biggest commercial real estate deal in
Seattle’s history, entrepreneur Jeff Bezos’ Amazon.com 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.
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| 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.