M
artin Selig Real Estate, a Seattle-based developer, has put two development sites up for sale as it struggles to pay off hundreds of millions in loans tied to its office properties. The company has listed the two-thirds acre lots at 400 Fourth Avenue W and 401-419 Queen Anne Avenue N in Lower Queen Anne for an undisclosed price. Both properties are zoned for apartments up to 85 feet, with the Fourth Avenue site capable of accommodating 200 units and the Queen Anne site including a vacant office building and a 20-unit apartment building built in 1912.

    The sale indicates financial trouble for the 66-year-old commercial development firm led by Martin Selig, who built Columbia Center, Seattle's tallest building, four decades ago. Financial challenges forced him to sell the tower, but allowed him to continue building. Now, his firm faces more distress as $379 million in securities backed by nine older office buildings comes due in April.

    The combined debt adds up to $858 million, secured by office properties that have been hit hard by the pandemic shift to remote work, suppressing demand and driving values to historic lows. The cost of financing is also a challenge, with nearly $20 billion in commercial mortgage-backed securities (CMBS) debt backing office properties across the nation set to mature next year.

    Martin Selig Real Estate's financial struggles are a significant turnaround for a firm that once owned a third of Seattle's Downtown offices. Five years ago, Selig told investors he was often approached about buying company buildings, but now his firm is selling developable properties to stay afloat.