Built in 1928, the three-story building is located at 1001 Broadway in Seattle's First Hill neighborhood, which due to a preponderance of medical centers is referred to locally as "Pill Hill." The building is located near Swedish Medical Center, Virginia Mason Medical Center, Harborview Medical Center, the Polyclinic, Nordstrom Medical Tower and the Fred Hutchinson Cancer Research Center. It also is adjacent to Seattle University.

Major tenants include Banner Bank, Polyclinic (multi-specialty clinic) and TRAC Associates (staffing services). Other tenants include Aurora Medical Services (abortion services), Babes Network (HIV/AIDS clinic) and AB Initio Productions (video production). Occupancy at the Northwest Medical was not immediately available.

The seller is listed as 1001 Broadway Associates LLC. James B. Potter, the founder and chairman of locally based Kauri Investments, is a member of the LLC. Don Fosseen and Lou Senini with CB Richard Ellis had the disposition assignment. Jim Klinger and Todd Battison of GVA Kidder Mathews in Seattle represented the buyer.

Lionstone Urban Investments I is a $185-million discretionary fund that launched in April 2005. The fund is structured with a 70% leverage and eight- to 10-year hold. Lionstone has previously acquired under-developed properties in expanding medical districts in Houston, Nashville, Chicago, Portland and Dallas.