When Smith Tower opened in 1914, it was among the country’s tallest buildings outside of New York. The Seattle, Washington, skyscraper has changed hands many times over the past 109 years, and it is once again on the market. The current asking price has not been revealed, but a flyer announcing the offering states the tower is “priced at a historically attractive basis.”
Planned by NY businessman L.C. Smith and later finished by his son, Smith Tower drew 4,200 visitors to its 35-floor observatory on its opening day. The observatory now includes a bar, which the flyer noted would offer a new owner ongoing revenue. The pyramid-shaped top of the building houses a penthouse — one of Seattle’s most expensive rentals. Nearly half of the building’s office and retail space is currently empty, according to the flyer, which notes the property’s “ultimate business plan flexibility via potential for full or partial residential conversion.”
With more than 25% of downtown Seattle office space vacant or available to sublease in Q2 2023, residential conversion may be a favorable option. The building’s current owners, Seattle-based development and investment firm Unico and Goldman Sachs Asset Management, have chosen to unload the historic skyscraper as the supply of Seattle office space rises, stalling the market. Expense and issues like insufficient lighting, however, make residential conversions challenging. Smith Tower is within the Pioneer Square Preservation District and would require advance approval from the neighborhood preservation board and the city for any changes or renovations — another hurdle to clear.
In June 2017, Unico undertook a complete modernization of the building’s manually operated elevators while maintaining their historic details. The seven original DC motor-powered Otis passenger units were updated with modern controls, seismic detection sensors, energy-efficiency features and glass doors to improve safety and dispatching. The most significant changes were made to the equipment in the machine rooms, rather than the car interiors.
Smith Tower last sold in early 2019 for close to US$138 million to owners anticipating an office boom. Instead, the COVID-19 pandemic began a year later, causing a rapid rise in remote work. What price the skyscraper will command in the current market remains to be seen. Its future, like that of so many other iconic office buildings, will depend on the creative vision and risk tolerance of those brave enough to buy.
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