Blackstone is selling the U.S. Bank Center in downtown Seattle to Spear Street Capital for about $280 million, roughly 54 percent below what the firm paid for the tower in 2019. It is a headline-making markdown that shows just how far values for big downtown office buildings have fallen since the pre-pandemic peak.
According to a report from Seeking Alpha, which cites Bloomberg, people with knowledge of the transaction said Blackstone has agreed to sell the building to Spear Street for about $280 million. The report says the price represents a discount of roughly 54 percent from Blackstone’s recorded 2019 purchase price.
King County records list the U.S. Bank Center’s recorded 2019 sale price at about $612 million, reflecting the premium paid in that cycle. The county filing also lists the tower’s rentable area in the high-900,000s of square feet, underscoring the scale of an asset changing hands at a steep markdown.
Downtown vacancy and price pressure
The sale comes amid persistent weakness in downtown office demand. Colliers reports in its Q1 2026 Puget Sound Office Report that Seattle's central business district vacancy is in the mid-30s percent range and regional availability is above 25 percent. Those figures have pushed owners to offer larger concessions and accept lower sale prices. The supply-demand mismatch, combined with higher financing costs, has helped fuel a wave of deeply discounted downtown transactions this year.
Why Spear Street may see opportunity
Spear Street Capital markets itself as a value-add owner and operator that buys assets at inflection points and lifts returns through leasing and capital improvements. Spear Street Capital lists Seattle as a core market and highlights a track record of repositioning properties, suggesting the firm may pursue upgrades or re-tenanting rather than a passive hold.
For tenants and the retailers that depend on downtown office workers, a change in ownership could mean renegotiated lease terms, fresh incentives, or capital upgrades to the building’s lobby and retail concourse. Colliers research notes landlords across the region are offering larger concessions to chase occupancy, a dynamic the new owner could either lean into or try to reverse with targeted investment.
The reported sale is another sign that large downtown office assets are re-pricing to reflect post-pandemic demand patterns. We will update this post if Blackstone, Spear Street or public filings provide further details or official confirmation.
