Seattle-based real estate holding company GT Capital recently led a group of investors in the acquisition of the landmark Smith Tower and nearby Butler Garage. The ownership group includes local investment firms Freestone Capital Management and Evergreen Ventures (the alternative investment arm of Evergreen Gavekal), as well as several yet-unnamed prominent Seattle families.
Located in Pioneer Square, Smith Tower was originally completed in the early 1910s and stood as the city’s first skyscraper. Named after industrialist L.C. Smith, the tower stands 37 stories tall; includes a world-famous observatory; and dons a distinctive, neoclassical design and a unique charm that the new owners plan to preserve while repositioning the property to meet current market and tenant standards.
The Smith Tower rises nearly 40 stories above Pioneer Square on Second Avenue in Seattle. Property image courtesy of CommercialEdge.com.
The property incorporates nearly 270,000 square feet of class A downtown Seattle office space and roughly 6,000 square feet of retail. Smith Tower was also awarded a LEED Gold certification and boasts superior accessibility with major exposure along Second Avenue and close proximity to several public transit stations.
Across the street from the Smith Tower is the other asset in this transaction: The Butler Garage was a key component of the deal as it provides safe and secure parking in the Pioneer Square neighborhood.
According to CommercialEdge research data, the Smith Tower building is a good candidate for a quality conversion to residential use. Even so, the new owners have not forwarded any plans in that direction. Instead, repositioning plans include providing additional security services, as well as redesigning the retail, culinary, and tourist experience to align with Seattle’s enduring dynamism and innovative spirit.
“Our new cost basis gives us the ability to offer tenants the most competitive terms in the city,” said Joe Razore, founding principal of GT Capital. “Smith Tower is a pillar of the Seattle skyline with incredible views and all the modern-day conveniences. We’re fortunate to take over a building that already has an extensive amenity package, including a 22nd-floor tenant lounge and roof deck; the state-of-the-art fitness center and cardio studio; and the full-time security and concierge. We’re open for business and are committed to providing best-in-class experience with very attractive terms for our tenants. This investment is a testament to our core belief that the future of the City of Seattle, along with the people who live and work here is very bright.”
The Smith Tower in Seattle’s Pioneer Square at 506 Second Ave. Property image courtesy of CommercialEdge.com.
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