X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SEATTLE-Locally based Onvia Inc. has unloaded 60% of its 80,000-sf headquarters leasehold obligation at 1260 Mercer St. The publicly held provider of government sales leads to businesses cut a deal with the building owner whereby the Bill & Melinda Gates Foundation will take 49,000 sf that Onvia had committed to lease but has not been using. The building is about one mile from where the Gates Foundation will develop a new headquarters campus.

The Foundation’s leasehold includes the entire fourth floor and a portion of the first floor. Details of the Foundation’s lease agreement were not disclosed in Onvia’s SEC filing regarding the transaction because it was a direct lease with the building owner, not a sublease from Onvia. Onvia says it has entered into an amended lease with its current landlord in which it will retain the remaining 30,000 sf of office space through April 30, 2010. In addition, it will give the Foundation $215,000 for tenant improvements.

Onvia’s revised leasehold, 29,785 sf, includes part of the First, Plaza and third floors. The lease rate starts out at $45.83 per sf per year ($113,754 per month) and ramps up to $48 per sf ($119, 145 per month) over the life of the lease. The lease rate includes operating costs and the cost of leasing 77 parking spaces in the building. Onvia chairman Mike Pickett says the reduction in its idle lease obligation will improve the company’s cash flow by $2.7 million over the remaining lease term.

The Foundation is preparing to develop a new headquarters for itself on a 12.3-acre lot across Fifth Avenue North from Seattle Center’s Memorial Stadium. The world’s largest private philanthropic organization purchased the parking lot from the city in March 2005 for $50.4 million. Construction of the campus is slated to get under way in 2007.

The new campus was prompted by the sale of 1551 Eastlake, the current leased headquarters of the Foundation. The life sciences REIT Alexandria Real Estate Equities paid $29 million for the 120,000-sf office building.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.