Amazon.com’s move from Beacon Hill to South Lake Union is helping to revitalize the up-and-coming neighborhood in the center of the city. But the real estate company that operates the old Amazon headquarters in the PacMed building on Beacon Hill is running into a new set of problems four months after the online retailer’s lease expired.
The Seattle Times reports that Wright Runstad has defaulted on its loan for the property, which has struggled to attract tenants in the wake of Amazon’s departure. A financial services firm that handles the $23 million loan wrote in a report that Wright Runstad missed its August payment and foreclosure is proceeding.
An executive for Wright Runstad told The Times that it is a “situation with a lot of moving parts,” and real estate watchers indicated that it was unlikely that the lender, Credit Suisse, would want to repossess the building.
The 16-story brick building was opened as a Marine Hospital in 1933, with Amazon moving into the renovated building in 1998.
Some technology industry leaders looked into the idea of turning the PacMed building into an incubator space for technology startups, but that idea fell apart earlier this year.