Martin Selig Real Estate Secures Seattle Lease Renewal

Martin Selig Real Estate caught a leasing break recently as distress gobbles up its portfolio.

The Seattle-based firm secured a renewal from the Washington State Department of Transportation at its 3rd & Broad property at 2901 Third Avenue, the Puget Sound Business Journal reported.

The 59,000-square-foot lease renewal shaved about a third of the transportation department’s space in the six-story building, cutting its presence from three floors to two.

The lease runs through Aug. 31, 2030, and the state will pay the monthly base gross rent of $181,385, while Martin Selig Real Estate will pay property taxes, maintenance and insurance.

The agency will also pay $13,732 a month for parking spaces, bringing the monthly rent payment to more than $195,000, or $11.7 million over the 60-month term.

The state agency is slated to receive $1 million for tenant improvement work and almost $59,100 for moving expenses as part of the deal. The landlord has until April 1 to complete the work, such as minor repairs, paint and carpet, or the monthly rent will drop to $16,667.

Martin Selig Real Estate has had a tough year. The company faced default on some $850 million worth of debt, and the firm lost 20 properties across the city in foreclosures and seizures. In March, the company laid off 86 employees, and the following month, founder Martin Selig’s daughter Jordan Selig, the heir apparent of the company, left the firm.

Just this month, a parking lot in Belltown formerly owned by the firm that fell into receivership sold for $4.3 million. Last week, seven other former Selig-owned office buildings sold to special servicer CW Capital for $120 million.

The firm still has about 20 properties left in its portfolio, including the 3rd & Broad building.

— Chris Malone Méndez