Urban Visions has acquired the Grand Central Block in Pioneer Square for $5.2 million, CEO Greg Smith stated Friday.
The price is nearly $40 million less than what a Goldman Sachs affiliate purchased the property for months before the pandemic.
Smith indicates his company plans to remove graffiti from the three vacant buildings that comprise the block and lease the vacant ground-level retail and upper office floors to small creative companies. The First Avenue South buildings are four and five stories and face Occidental Park. They total 141,400 square feet.
“We’re bringing the energy back,” stated Smith, who is partnering with nonprofit Ripple Productions to open an immersive theatrical experience called Nebula Seattle. The same group was behind the dinner theater company Cafe Nordo, which operated nearby until 2023.
Smith indicated the Grand Central will have an installation showcasing Amazon bookshelves from the company’s first downtown office in the Chromer Building at 1516 Second Avenue.
“In a symbolic gesture honoring Seattle’s gold rush heritage and its legacy of technological innovation, Urban Visions will accept rent payments in gold, U.S. dollars or Bitcoin,” Smith stated.
Last decade, Unico Properties and Goldman Sachs affiliate Broad Street Principal Investments LLC planned to combine the three buildings to operate as a single office and retail property. Seattle-based Unico had purchased the asset in 2014 for $26.6 million, with plans to convert the use to housing.
In late 2019, Unico sold the property for $45 million to Broad Street but retained a small stake. The plan shifted to operating the block as a single office and retail building.
This summer the block, 202-216 First Avenue South, was listed by JLL unpriced, with the agency characterizing it as being offered at “a compelling discount.”
For Smith, it represents a back-to-the-future moment. One of his first jobs was operating the concession stand at Pioneer Square’s UPS Waterfall Garden Park, making butter horns and coffee.
“In acquiring the Grand Central Building, we’re not just preserving a landmark,” he stated in a release. “We’re reimagining a space where Seattle’s entrepreneurial spirit was born, ready now for the next generation of artists, entrepreneurs and innovators.”
Smith grew up on Mercer Island in the 1960s and ’70s, watching office towers rise to the west in downtown Seattle, where his father was a commercial real estate investor.
He went on to develop Weyerhaeuser’s headquarters building on the east side of Occidental Park.
Smith branched out from his family’s Martin Smith Inc. business and launched Urban Visions. It works to increase urban density as a means of preserving the Northwest’s natural surroundings and resources.
Elsewhere in Pioneer Square, Smith is part of Good Arts LLC, which renovated the historic building at First Avenue and Cherry Street to supply affordable space for artists and other creatives. Cherry Street Coffee, which he co-owns, operates at the base.
Co-executive Artistic Director Erin Brinley indicates Ripple Productions is in the midst of a $4.2 million capital campaign, having raised $1 million from individual supporters for Nebula Seattle.
The theater will commission $1.2 million of arts installations for the project and offer actors full-time, salaried acting work.
“A unique, interactive food program with snacks designed by Cafe Nordo will be served,” she stated.
She expects the venue could attract 28,000 visitors annually.
The $5.2 million purchase price representing 88% discount from the $45 million that Broad Street paid in late 2019 demonstrating the catastrophic value destruction Seattle commercial real estate has experienced, with the price collapse reflecting pandemic work-from-home transitions, downtown crime and homelessness concerns, and oversupply of office space that transformed once-premium properties into distressed assets.
The nearly $40 million loss absorbed by Goldman Sachs affiliate Broad Street Principal Investments illustrating how even sophisticated institutional investors miscalculated Seattle office market trajectories, with the massive write-down representing one of the most spectacular commercial real estate losses in recent Puget Sound history demonstrating that no amount of financial expertise protects against fundamental demand shifts.
The three vacant buildings comprising the Grand Central Block reflecting Pioneer Square’s broader struggles, with the emptiness symbolizing how Seattle’s historic district has suffered disproportionately from downtown’s pandemic and post-pandemic challenges where visitors and workers abandoned the area leaving businesses shuttered and properties deteriorating.
The graffiti removal priority signaling the property’s current condition, with the vandalism indicating years of neglect where absent ownership or security enabled taggers to deface the historic buildings creating visual blight that repels potential tenants and visitors requiring immediate remediation before any leasing or redevelopment can proceed.
The ground-level retail and upper office leasing strategy targeting small creative companies representing realistic approach given market conditions, with Smith recognizing that pursuing traditional corporate tenants in Pioneer Square proves futile requiring instead affordable space offerings attracting artists, nonprofits, and startups willing to occupy marginal locations.
The 141,400 square feet across four and five-story buildings facing Occidental Park representing substantial space requiring creative programming, with the square footage indicating the property could accommodate dozens of small tenants if Smith successfully implements his vision though filling vacant Pioneer Square space remains challenging despite bargain prices.
The Ripple Productions partnership for Nebula Seattle immersive theater demonstrating Smith’s commitment to arts-driven revitalization, with the theatrical experience potentially generating foot traffic and creating destination draw that conventional office or retail uses cannot achieve in depressed downtown market.
The Cafe Nordo connection providing operational credibility, with the dinner theater’s successful run until 2023 demonstrating Ripple Productions’ ability to execute immersive experiences though the closure also raises questions about whether theatrical concepts can sustain long-term viability in challenging downtown environment.
The Amazon bookshelf installation from the company’s first Chromer Building office creating tech history exhibit, with the nostalgic display honoring Seattle’s transformation from regional commercial hub to global technology center while potentially attracting Amazon employees and tech tourists interested in the company’s origin story.
The gold, U.S. dollars, or Bitcoin rent payment acceptance representing publicity stunt generating media coverage, with the unconventional payment options creating viral marketing while the gold reference nods to Seattle’s Klondike Gold Rush heritage and Bitcoin acceptance signals tech-forward orientation though practical implementation challenges make the offer likely symbolic.
The 2014 Unico purchase for $26.6 million with housing conversion plans representing pre-pandemic optimism, with the residential strategy reflecting Seattle’s then-booming apartment market before regulatory barriers, construction costs, and office-to-residential conversion challenges killed many such projects leaving properties in limbo.
The late 2019 $45 million Broad Street acquisition representing peak pricing, with the transaction occurring just months before COVID-19 transformed commercial real estate fundamentals making the timing catastrophically unfortunate for the buyer who paid top dollar for assets about to plummet in value.
The plan shift from housing to office and retail reflecting market realities, with Broad Street abandoning residential conversion recognizing the regulatory and financial obstacles while pursuing office strategy that pandemic work-from-home trends would soon render equally unviable.
The summer listing by JLL as “compelling discount” representing euphemistic marketing language, with the characterization attempting to reframe massive price reduction as opportunity rather than distress while unpriced listing strategy allowing brokers to gauge buyer interest without revealing seller desperation.
Smith’s UPS Waterfall Garden Park concession stand origin story creating narrative arc, with the biography connecting his teenage first job in Pioneer Square to his current $5.2 million acquisition returning to the neighborhood where his career began creating compelling personal investment beyond pure financial calculation.
The 1960s and ’70s Mercer Island upbringing watching downtown towers rise providing formative experience, with Smith’s childhood observations of his father’s commercial real estate investments and Seattle’s skyline transformation informing his development career and urban density philosophy.
The Weyerhaeuser headquarters development on Occidental Park’s east side establishing Smith’s Pioneer Square credentials, with the major project demonstrating his capability executing significant developments in the historic district providing relevant experience for the Grand Central Block revitalization.
The Martin Smith Inc. family business branching to Urban Visions representing entrepreneurial evolution, with Smith maintaining his father’s commercial real estate legacy while pursuing his own vision emphasizing urban density preserving natural surroundings reflecting progressive environmental values alongside business objectives.
The Good Arts LLC First Avenue and Cherry Street renovation demonstrating Smith’s artist-focused development model, with the affordable creative space project providing proof of concept that the Grand Central Block strategy replicates on larger scale while Cherry Street Coffee co-ownership shows his willingness to operate businesses beyond pure real estate investment.
The $4.2 million Ripple Productions capital campaign with $1 million raised indicating substantial fundraising requirements, with the nonprofit’s financing needs potentially creating execution risks if remaining $3.2 million proves difficult to secure though the $1 million already committed demonstrates donor enthusiasm.
The $1.2 million arts installations commission representing significant cultural investment, with the expenditure demonstrating serious commitment to quality programming rather than minimal-budget productions that might fail to attract audiences or generate positive press coverage.
The full-time salaried acting work offering addressing precarious theater employment, with the stable positions potentially attracting top talent while the progressive labor model aligns with Seattle’s values though the financial sustainability of salaried theatrical employment remains uncertain.
The Cafe Nordo-designed interactive food program connecting to the group’s dinner theater heritage, with the culinary component differentiating Nebula Seattle from traditional theaters while potentially generating additional revenue beyond ticket sales.
The 28,000 annual visitor projection representing modest but achievable attendance, with the estimate suggesting 2,300 monthly guests or roughly 75 daily visitors creating baseline activity that could support the theater while contributing to broader Pioneer Square revitalization if visitors patronize neighboring businesses.
