Cushman & Wakefield Secures $107 Million Refinancing for Seattle Mixed-Use Landmark
As reported by Connect CRE, Cushman & Wakefield has arranged a $107 million refinancing on 255 South King Street — a 717,692-square-foot mixed-use property in Seattle.
The borrower is an affiliate of Steinhauer Properties; the loan was originated by Stoneway Capital on behalf of Ardent Capital Management.
Deal mechanics and market read
Cushman's Capital Markets team on the deal: Dave Karson, Chris Moyer, Chris Meloni. The asset composition:
- 209,484 sq ft office tower
- 282-room Hilton Embassy Suites hotel with 10,000 sq ft of meeting and event space, pool, fitness center, parking garage
- 17,292 sq ft retail
- Total 717,692 sq ft, near regional light rail and bus corridors, walking distance to downtown retail and dining
Karson, per Connect CRE: "Office and hotel have been out of favor in Seattle the last few years, but we are seeing signs of capital returning to the space; this refinancing underscores interest in high-quality assets with strong cash flow."
Three data implications for owners and buyers tracking the Puget Sound MXU segment:
1. The origination path — Stoneway placing debt on behalf of Ardent — is consistent with non-bank capital, not a regulated-bank term sheet. Pull non-bank quotes alongside bank quotes when pricing a comparable asset.
2. A 209,484 sq ft office tower in 2026 does not refinance against a vacant floorplate. Demand current occupancy disclosure before modeling any MXU comparable.
3. MXU recovery remains asset-specific. Transit adjacency and the 17,292 sq ft retail component differentiate 255 South King from suburban or auto-dependent inventory. Apply any implied cap rate movement only to assets with comparable foot-traffic features.
Context and what to track
Two related items surfaced in the same week, though full details beyond the headline were not disclosed at filing:
- The Seattle Times op-ed, August 14, 2026, on modernizing state property law to expand housing supply.
- KING5 report, August 13, 2026, on Seattle developers converting empty office to housing.
Both are policy and conversion signals, not transaction evidence.
Track within the next 12 months for confirmation: the next MXU refinancing or sale above $75M in the Seattle CBD, Pioneer Square, or South Lake Union; debt quotes your broker returns on stabilized Seattle hospitality within 60 days; office occupancy trends on assets carrying a hotel flag with ground-floor retail.
A second institutional MXU print in this range confirms capital reentry into Seattle's mixed-use market. A solitary print keeps Puget Sound MXU pricing range-bound through late 2027.