Amazon buys its Seattle HQ for $1.16 bn

The world's largest online retailer Amazon.com has agreed to buy the headquarters building the company had leased in Seattle's fast-growing business district from Vulcan Real Estate for approximately $1.16 billion

The deal is the biggest single commercial property transaction in the US so far this year. The 11-building South Lake Union headquarters complex covers an area of 1.8 million square feet. The $644-per square foot deal is one of the highest office deals in the city's history.

The sale is expected to close before the end of the year, subject to required clearances.

Seattle-based Vulcan is owned by billionaire Microsoft co-founder Paul Allen. The real estate developer started work on the complex in 2008 after Amazon executed lease agreements extending beyond 2020 for the property. The last building of the complex is nearing completion.

The developer said in August that it plans to sell the property to rebalance its real estate portfolio and generate capital for more development in the area. Prior to this, Vulcan had put on sale another 320,000-square foot Westlake-Terry building. Both the complexes combined account for more than 40 per cent of the built portfolio of Vulcan.

Newer office buildings in downtown Seattle fetched up to $558 per square foot last year, and the company expected to fetch over $1 billion through the sale.