Blackstone will reportedly sell Seattle tower at 54% loss

June 1, 2026 - 22:06

Blackstone is selling a Seattle office tower for a price that represents a 54% loss from what it paid for the property just over a decade ago. The deal highlights the ongoing struggles in the commercial real estate market, particularly for older office buildings in major cities.

The private equity giant has agreed to sell the 41-story tower at 1918 Eighth Avenue to Spear Street Capital, an office landlord that manages roughly $4 billion in real estate assets. The sale price is reportedly around $120 million. Blackstone originally bought the building in 2013 for about $260 million.

The property, which was built in the early 2000s, has faced significant challenges in recent years. Rising interest rates and a shift toward remote and hybrid work have slashed demand for traditional office space. Tenants have been downsizing or leaving older buildings for newer, amenity-rich properties. The tower's vacancy rate has climbed as a result, pressuring its value.

This sale is one of the largest losses on a single office asset in Seattle since the pandemic began. It reflects a broader trend across the U.S., where office property values have fallen sharply. Many landlords are now selling at steep discounts or handing keys back to lenders.

Spear Street Capital, known for acquiring distressed or underperforming office assets, sees an opportunity to reposition the building. The firm has not disclosed its specific plans, but similar deals often involve renovations or converting parts of the property to other uses.

The transaction is expected to close in the coming weeks.