Martin Selig Real Estate Modifies Nearly $500 Million in Loans on 12 Seattle Office Buildings
Martin Selig Real Estate has completed modifications of loans totaling nearly $500 million on 12 Seattle office buildings, enhancing its ability to sign new leases and renewals in all 12, according to a Nov. 2, 2026, announcement from Newmark.
Newmark leases the portfolio. The team is led by Executive Managing Directors Cavan O'Keefe and Jesse Ottele and Director Brody O'Keefe, working with Martin Selig Real Estate's Leasing Director Michael Brixner.
Loan Modifications Cover Two Financing Facilities
The modifications cover nine buildings financed through a loan serviced by Midland Loan Services, along with three additional buildings financed under a separate loan facility. Under the executed Midland agreement, the receivership will be terminated and the loan transferred back to the master servicer before the end of 2026.
The announcement described the modifications as a significant milestone for one of Seattle's most recognizable office ownership groups and said they position ownership and Newmark to accelerate leasing activity. The transaction is a loan modification rather than a sale.
"These modifications send a clear signal to the market that these assets are actively competing for tenants," said Cavan O'Keefe.
Matt Alisch, chief executive officer of Martin Selig Real Estate, said: "With these modifications complete, we're focused squarely on growing occupancy and serving our tenants. The agreements provide clarity and stability for the portfolios and reinforce our ability to transact and invest in our buildings for the long term."
Martin Selig, founder of Martin Selig Real Estate, said: "These modifications provide the runway needed to continue investing in our buildings, supporting our tenants and creating value across the portfolio."
Portfolio Spans Five Seattle Submarkets
The 12 buildings total approximately 2.2 million square feet across the Central Business District, Waterfront, Belltown, Lower Queen Anne and Ballard. More than 1 million square feet is available, or roughly 46% of the stated portfolio area. The available space is distributed as follows:
- Central Business District: 1000 Second Avenue (169,500 square feet)
- Waterfront: 3131 Elliott; 3101 Western; Elliott Bay Office Park (315,000 square feet)
- Belltown: Third & Broad; Fourth & Vine (175,000 square feet)
- Lower Queen Anne: Third & Harrison; West Tower (400 Second Ave. W.); 190 Queen Anne; 200 First West; 18 West Mercer (348,000 square feet)
- Ballard: 15th & Market (58,000 square feet)
Martin Selig Real Estate lists 1000 Second Avenue, a 40-story building at 1000 2nd Ave. built in 1986, at 459,010 total square feet. 3131 Elliott, at 3131 Elliott Ave., is a seven-story building completed in 1986 with 207,933 total square feet.
Seattle Office Market Shows Gains Amid High Vacancy
Newmark Research reported that the Puget Sound office market posted 315,500 square feet of positive absorption in the third quarter, the strongest quarterly performance of 2026. Vacancy fell to 22.8% from 23.0% in the second quarter, the third consecutive quarterly decline. Year-to-date absorption reached 783,990 square feet, the first positive year-to-date result since 2019. In Downtown Seattle, Newmark recorded 277,707 square feet of third-quarter absorption.
Newmark said that as tenants continue making long-term real estate commitments and new office construction remains effectively absent, well-located assets are increasingly competing in a market showing renewed leasing momentum.
Vacancy nonetheless remains elevated by other measures. Seattle proper recorded 27.7% vacancy in the third quarter, compared with 22.2% on the Eastside and 18.2% in South King County. Downtown Seattle vacancy stood at 35.8%, up from 35.1% a year earlier. The figures reflect different geographies and methodologies.
About Martin Selig Real Estate
Martin Selig Real Estate is an independent developer and owner of office buildings in the Pacific Northwest and has operated since 1958. The vertically integrated firm develops, owns and manages its properties, giving tenants direct access to ownership.
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