A California firm bought a building leased by Microsoft near the tech giant’s corporate headquarters in the latest sign that office investment is picking up in the Seattle area.
Los Angeles-based Preylock paid $225 million for the seven-story One Esterra Park in Redmond, less than 4 miles south of Microsoft’s headquarters campus, according to county property records.
The deal is the biggest office transaction by price for the greater Seattle region this year, according to CoStar records, trailing Blackstone's $218 million purchase in June of a partial interest in Bellevue's Spring District.
Office sales are starting to pick up in greater Seattle. The region posted $800 million in office deals in the first half of 2025 — the highest total for the first two quarters of a year since 2022, according to CoStar analytics.
The deal “is a good example of renewed institutional interest in the Seattle area, especially on the Eastside,” said Elliott Krivenko, CoStar’s senior director of market analytics.
“Core assets with long-term credit tenants are attracting premium pricing, and I expect continued momentum as we move into 2026,” Krivenko said.
Microsoft moved into the seven-story building at 15550 NE Turing St. shortly after developer Capstone Partners and PGIM, the investment management arm of Prudential Financial, finished construction in 2021, according to CoStar records.
One Esterra is the second Redmond office building acquired in the past year by Preylock, an institutional owner and developer of office, logistics and other facilities, many occupied by tech tenants, with an investment value of over $4 billion, according to its website.
In December, the company bought a two-story office building in downtown Redmond occupied by Amazon for $58 million.
Preylock made headlines last year when semiconductor maker Nvidia bought its longtime headquarters in California's Silicon Valley from the Los Angeles-based firm for just over $374 million in an early sign of office demand from artificial intelligence companies.
Just over two years ago, Preylock arranged a $1.2 billion refinancing loan of 12 distribution centers in 10 states leased to online retail giant Amazon.