Despite Challenges, Gridiron Leverages Location in Qualified Opportunity Zone

The ground-floor commercial condo at the Gridiron Condos in Pioneer Square recently sold for $5 million. Located at 590 First Avenue South, Gridiron was sold as an Opportunity Zone property to PNW QOZB 1 LLC, which is associated with 22NW LP, a local hedge fund.

The 11-story building is located at the apex of Seattle’s new Waterfront Park stadium district and Pioneer Square in a unique triangle-shaped structure that touches all three districts. Gridiron’s retail space comprises approximately 8,423 deeded square feet on the ground floor (9,605 total square feet including additional storage space).

Seller Daniels Real Estate redeveloped the property in 2017 atop the century-old brick foundation of the Seattle Plumbing Building. Gridiron has 107 condos above the commercial space. Since it was developed, the ground-floor commercial condo has been vacant, with various brokerage firms trying unsuccessfully to sell it.

Kidder Mathews’ Jason Miller and Scott Blankenship represented the seller.

“Our Kidder Mathews team took on the listing in 2020 at the beginning of the COVID-19 pandemic, just as Seattle went into lockdown,” said Miller. “Despite the negative impact the virus had on the downtown market, we were able to successfully leverage the fact that the property was located in a qualified Opportunity Zone and sold it at our client’s target price of nearly $600 per square foot to an opportunity zone investment fund.”