Blackstone to Sell Seattle Office Asset at $332M Loss

June 1, 2026

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Spear Street Capital is the buyer of this 44-story tower.

Blackstone has agreed to sell U.S. Bank Center in Seattle for about $280 million, representing less than half of what it paid for the building just before the pandemic, Bloo m berg reported, citing sources familiar with the pending deal. The buyer, assuming financing can be procured, will be Spear Street Capital, a major office landlord.

U.S. Bank Center fetched $612 million in 2019, with the debt on the building coming in at $427.8 million, according to Bloomberg. Brokerage Eastdil Secured Lenders facilitated the current sale, with the cooperation of lenders Deutsche Bank and U.S. Bank.

Traditional U.S. office assets now account for less than 1.5 percent of investment giant Blackstone’s holdings. Blackstone acknowledged that its investment in U.S. Bank Center was effectively written down in 2023.

The 943,575-square-foot US Bank Center was developed in the late 1980s and rises 44 stories over downtown. It traded a number of times before Blackstone acquired it in a deal that included Seattle’s Docusign Tower as well.

As an investor, Spear Street Capital focuses on assets and portfolios greater than $25 million. Since its founding in 2001, the company has invested in more than 85 properties in the United States, Canada and Europe, representing over $11 billion in total value.

Seattle office market blues

Seattle has faced a persistently weak office market since the pandemic crushed demand and solidified a higher rate of employees working from home. Investors are shying away from the market, with sales of $255 million during the first four months of 2026, according to Yardi Matrix data. That figure is dwarfed by such markets as Manhattan ($2.8 billion in sales over the same period), San Francisco ($1.5 billion) and Dallas ($1 billion).

Blackstone is still active in the greater Seattle office market, however, partnering in March with New York Life to provide Kemper Development with $238 million in refinancing for its Lincoln Square North, a 25-story, 561,466-square-foot office tower in Bellevue, Wash.

The investor has done better in other office markets, In January, Blackstone sold 61–63 Crosby Street in the SoHo district of Manhattan for $53 million. The haircut was much smaller in that deal, considering that Blackstone had paid $54.4 million for the asset and held it for just over a year. Vertex was the buyer.