Martin Selig Returns Seattle Buildings After Default

Martin Selig Real Estate, the 67-year-old commercial development firm led by Martin Selig, has officially transferred ownership of two Seattle office buildings to its lender, Acore Capital, after a prolonged struggle for control of the assets that included the company’s default on a $240 million loan tied to the properties.

The office buildings are the eco-friendly 400 Westlake at 400 Westlake Avenue in South Union and the Federal Reserve Building at 1015 2nd Avenue, according to the Puget Sound Business Journal.

The transfer in ownership highlights the difficult market for the independent developer, who recently laid off 86 employees as seven Seattle buildings slid into receivership.

The recently developed 400 Westlake, a 15-story green building near Amazon’s South Lake Union campus, remains largely vacant, with 94 percent of its 230,000 square feet available for lease. The Federal Reserve Building, a 215,567-square-foot adaptive reuse project downtown, has an 82 percent vacancy rate.

Martin Selig Real Estate, Seattle’s largest independent developer, acknowledged the ownership transfer just days after a scheduled trustee sale. As part of the transition, property management duties will shift to Urban Renaissance Group, though Martin Selig Real Estate will continue to handle leasing. The company described the decision as a collaborative solution to difficult market conditions and reaffirmed its focus on managing its remaining portfolio.

Selig, 88, is working with legal counsel to navigate the financial crisis, which has worsened since his daughter and designated successor departed the company.

In 2023, the company defaulted on loans backed by seven other properties, including the 635 Elliott building, which is partially leased to Amazon. These assets, now in receivership, led to 86 layoffs. Kidder Mathews was appointed as the property manager, while Colliers was awarded leasing responsibilities for the 1.1 million-square-foot portfolio.

Financially, MSRE is struggling with nearly $379 million in loans tied to nine more buildings, including its headquarters at the 1000 Second tower, and an additional $50 million tied to seven parking lots — all now under receivership.

Selig, known for developing the Columbia Center — once the tallest building in the Pacific Northwest — faced similar financial difficulties in the past, having sold the tower in 1989. The current situation marks another significant turning point in the history of his company.

— Joel Russell