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n a move that underscores the challenges facing Seattle's independent developers, Martin Selig Real Estate has ceded control of two major office buildings to Acore Capital. The transfer marks a significant setback for the 67-year-old company, which had defaulted on a $240 million loan tied to the properties.

    The affected buildings are the eco-friendly 400 Westlake and the Federal Reserve Building, both of which have struggled with low occupancy rates. The 400 Westlake, a 15-story green building near Amazon's South Lake Union campus, boasts an impressive 230,000 square feet but remains largely vacant at 94% availability. Meanwhile, the Federal Reserve Building, a 215,567-square-foot adaptive reuse project downtown, has an 82% vacancy rate.

    As part of the transition, property management duties will shift to Urban Renaissance Group, while Martin Selig Real Estate will continue to handle leasing. The company's founder, Martin Selig, is navigating the financial crisis with the support of legal counsel after his daughter and designated successor departed the firm.

    The transfer comes on the heels of a tumultuous period for Martin Selig Real Estate, which has struggled to manage its debt burden. In 2023, the company defaulted on loans backed by seven other properties, including the 635 Elliott building, partially leased to Amazon. This led to 86 layoffs and the appointment of Kidder Mathews as property manager, with Colliers taking over leasing responsibilities for the 1.1 million-square-foot portfolio.

    The company's financial woes are far from over, with nearly $379 million in loans tied to nine more buildings, including its headquarters at the 1000 Second tower, and an additional $50 million tied to seven parking lots – all now under receivership.