The University of Washington will move ahead with a building envisioned as a gateway into a reimagined part of its Seattle campus after prevailing in a lawsuit brought by a prominent developer.
Alexandria Real Estate Equities Inc. (ARE) filed three claims against the UW in Thurston County Superior Court in Olympia, Wash. Last Friday, Judge Carol Murphy sided with the university (see ruling below) in finding that ARE’s final claim “lacks standing as a disappointed bidder” in its quest to develop a building currently referred to as W27, which will house research centers in clean energy, medical science and more.
Pasadena, Calif.-based ARE, which has significant properties and investments in the Seattle region, participated in the request for quotation (RFQ) and request for proposal (RFP) processes and was one of two finalists for the project.
The UW chose Baltimore-based Wexford Science + Technology to develop the project. The two parties entered into lease contracts in which Wexford will design, finance, construct and maintain the new facility, and lease back roughly 100,000 square feet of space to the UW. Wexford has 17 “knowledge communities” in its development portfolio.
ARE first filed suit in June 2021, disputing the UW’s development RFP process. It also filed a request for a preliminary injunction that was dismissed by Murphy.
The judge concluded that the process for selecting a developer “was not arbitrary” and was “thoughtful, robust and ultimately fair.”
ARE has partnered with the UW going back to 1998, according to the court ruling.
“We absolutely intend to appeal,” said Joel Marcus, ARE executive chairman and founder, in an emailed statement to GeekWire on Wednesday.
The UW rejoiced at the closing of the ongoing dispute — which it referred to as a “nearly two-year effort by ARE to delay the project.”
“We feel buoyed by the court’s decision, which reinforces the legitimacy and professionalism of our selection process and clears the path for us to move ahead with this pivotal development,” Lou Cariello, UW’s vice president for facilities, said in a statement provided by the university. “At the same time, we are disappointed that ARE engaged in this legal approach, which has already resulted in significant costs to taxpayers in attorney fees, increased costs, and delays to the project.”
Update: The UW expressed disappointment Thursday in ARE’s plans to appeal the ruling.
“ARE has failed on all three claims and it is disappointing that ARE may appeal the Court’s clear and decisive decision and prolong this wasteful process,” UW spokesperson Victor Balta said. “ARE’s continuation of this effort is an affront to the taxpayers of the state of Washington and disruptive to the UW’s public mission.”
The UW envisions W27 as a gateway into what it’s calling Portage Bay Crossing, a neighborhood in the university’s west campus that will “merge education and student life with cutting-edge research, pioneering public/nonprofit institutions and private companies.”
The 340,000-square-foot, 11-story building will be located at 3919 University Way N.E.. The UW said it will be home to both academic and private research laboratories and offices, the Washington Clean Energy Testbeds, a rooftop solar panel testing area, the Institute for Protein Design and the Brotman Baty Institute. It will also house Connect Labs by Wexford Science + Technology.
Alexandria is a dominant player in life sciences real estate. Its buildings house operations for some of the Seattle area’s biggest biotech companies, including Seattle-based Sana Biotechnology and Bothell-based Seagen. ARE is developing a life sciences hub at Seattle’s almost three-acre Mercer Mega Block.
The Puget Sound Business Journal reported that the firm’s 432-property North American portfolio totals nearly 41.5 million square feet and generates over $2 billion in annual revenue. In the Seattle area it owns 46 properties totaling 2.8 million square feet, generating $109 million in annual revenue, according to the Journal.
