The Offering

Kidder Mathews is pleased to present the opportunity to acquire the Mercer Street Offering located in Seattle’s lower Queen Anne submarket. This offering includes two, single-story buildings on a 16,800-square-foot site providing a prospective buyer existing cash flow for the short term with an incredible future development opportunity. Within blocks of the Bill & Melinda Gates Foundation, the Space Needle, Key Arena, and the Seattle Center, this offering is truly a core opportunity with significant upside potential.

Located in Seattle’s Mixed Use 85’ zone within the Uptown urban center, this property allows for numerous development uses, including residential, office, retail, and hotel. Any future development will significantly benefit from the immense nearby job growth with Seattle regularly coming in at the top of the list as the best city in the US to find a job, the fastestgrowing big city, the best metro area for STEM professionals, and the highest job growth for small businesses in the U.S.

Seattle’s lower Queen Anne submarket is positioned in the heart of much of this growth. With South Lake Union and several of the world’s largest technology employers, including Amazon, Facebook, and Google, employing tens of thousands of high-paid and well-educated employees, within a several minute walk, any future development is guaranteed a high level of demand. Further, countless nearby amenities, including several of the city’s most trafficked parks and recreational areas, well-known bars and restaurants, and boutique shopping experiences, will ensure this demand continues.

The Mercer Street Offering provides an exceptional opportunity to acquire core real estate with immense upside in one of the world’s strongest markets.

Investment Highlights

  • The Mercer Street Offering is a true core location providing excellent access to pedestrians, bikers, as well as those on public transit
  • Unprecedented nearby job growth in South Lake Union and Downtown Seattle provides significant tenant demand from residential, hospitality, or office standpoint
  • Highly desirable location near Seattle Center and several of Seattle’s major landmarks
  • Walking distance to South Lake Union Streetcar
  • Numerous nearby amenities including parks, restaurants, bars, shops, and entertainment

Offering Process

Price: $9,300,000
Occupied by two tenants: Tenant 1 intends to stay and exercise its extension option through 2023. Tenant 2 has an 18 month termination clause in the lease.

The ownership will set a deadline for a definite bid date; however, reserves the right to accept a compelling offer prior to such date.

Property Details

Site Overview

Address 570-572 Mercer Street, Seattle, WA
Parcel # 545830-0405 & 545830-0415
Total Lot Size 16,800 SF / 0.39 AC
Buildings Two (2)
Stories One (1)
Existing Structure Size 15,700 SF
Occupancy 100%
Tenants 2
Parking Street

Located with a Mercer Street address as well as frontage along the popular corridor, the Mercer Street Offering is actually tucked above Mercer Street with access to the property from the much less trafficked 6th Avenue N. The property is bounded to the south by a pedestrian walkway along Mercer Street, a city alley to the west, 6th Avenue N to the east, and an adjacent surface parking lot to the north.

The 16,800-square-foot lot is situated on two parcels with two flex industrial buildings on site which are 100% leased to two local tenants generating stable cash flow for a prospective buyer. The property is level and rectangular in shape providing an excellent future redevelopment opportunity.

South-Facing View at 65'

A prominent view of the Space Needle, and downtown Seattle’s growing skyline. Visible at night is a 120’ by 80’ illuminated, jellyfish-like art installation at the center of the Bill and Melinda Gates Foundation.

North-Facing View at 65'

Queen Anne Hill and Queen Anne’s east slope are visible from 65’. Mature trees, single-family homes, and small apartment buildings give a quiet, neighborhood feeling in an urban setting.

Zoning & Development Potential

  • Zone   SM-85-UP (height limit 85')
  • Overlay Zones   Frequent Transit Uptown (Urban Center)
  • FAR Base   5.25 Max Commercial or Residential
  • Extra Floor Area   1 FAR for Arts / School (FAR Exempt)
    Additional 0.5 FAR for residential large units and amenity
  • FAR Exemption   23.48.005.D.23.48.040.C street level uses
    3.5% mech exempt (3,080 SF max)
  • Max Structure Width   250 foot max width
  • Upper Level Setback   NA
  • Peds Street Class   Class II Mercer
  • Required Parking   None
  • Amenity Area for Residential Development   5%
  • Open Space Requirement for Non-Residential   2%


Total Height: 85'
Total GSF: 91,150
Parking Capacity: 35 stalls per typical level


Total Height: 85'
Total GSF: 91,100
Unit Count: 99
Parking Capacity: 35 stalls per typical level



Often called the ‘crown jewel’ of Seattle, Queen Anne is home to sweeping views, historic homes, and Seattle’s elite. In comparison to other Seattle neighborhoods, Queen Anne has it all – an abundance of dining options, active nightlife, boutique shopping, highly rated schools, beautiful parks, and proximity to Seattle’s CBD. The 74-acre Seattle Center is particularly impressive, boasting 40 acres of greenspace, plus entertainment and festivals year round.

The $660M Key Arena redevelopment is set for completion by October 2020, and Seattle is posed to secure a professional hockey team before then and participate in the 2020-2021 NHL season. In addition to sporting events, Key Arena attracts well-known musical acts and is host to some of Washington’s largest high school and college graduation ceremonies each year. The Pacific Northwest Ballet and Seattle Opera perform next door to Key Arena at McCaw Hall.

High land values in Queen Anne have historically encouraged quality construction of new homes. The home prices here are among the highest in all of the Puget Sound and will continue to rise due to the proximity to the CBD, beautiful properties, plus a safe and inviting community. In July 2017, the Seattle Times published that Queen Anne is the first large Seattle neighborhood with a median home price above $1 million.

Within a mile of Mercer Street Offering, there is an impressive amount of planning and construction in progress. Queen Anne is typically more residential, and neighboring South Lake Union has been absorbing the office growth. As of June 2018, there are almost a dozen projects under construction or in the permit process less than a mile from Mercer Street Offering, totaling over 2 million square feet of office space. The frantic absorption of space almost promises future growth in these neighborhoods.

In addition to plentiful office space under construction, the multifamily sector has seen continued growth. The Seattle Times reported that the city was gaining 250 residents per week. These newcomers are typically millennials who have traded traditional car-centric suburbia for the convenience that urban living offers. In South Lake Union and Queen Anne combined, there are just over 1,900 units that have submitted applications to the Seattle Department of Construction and Inspections (SDCI) or are under construction as of June 2018.

Live-work units are expected to become more common – retailers gain the visibility and accessibility afforded by being located in a dense area. Tenants of live-work units gain the convenience and increased quality of life that comes from complete, walkable communities like Queen Anne and South Lake Union.


  • Two incoming Link light rail stations within walking distance of the subject property
  • Significant nearby tenant demand due to local job growth
  • Highly desirable location across from Bill & Melinda Gates Foundation & Seattle Center
  • Unparalleled visibility & high level of foot traffic
  • Centered between two of Seattle’s premier neighborhoods: Queen Anne and South Lake Union
  • Existing cash flow from long-term tenants
  • Quick access to Highway 99 and I-5
  • Centrally located in a live–work–play neighborhood

Public Transit / Traffic Count Aerial

Nearby Amenities

Population 62,836 256,265 476,873
Median Household Income $89,887 $84,616 $89,699
Median Home Value $689,997 $716,121 $692,283

Due Diligence

Please register to go to gain access to the due diligence documents, which includes the offering memorandum.