Seattle Times Co. explores sale of two parcels

The Seattle Times Co., searching for more cash to help its flagship newspaper, has put nearly half of its remaining real estate in fast-growing South Lake Union up for sale.

Listing agent Steven Wood of Century Pacific said The Times is marketing two properties: the 283,000-square-foot 1000 Denny Building, at Boren Avenue North and Denny Way, and the block just north of Times headquarters that is dominated by the mostly vacant Troy Laundry building.

Together, they cover more than four acres and have an assessed value of more than $32 million.

The Times decided to sell those properties now because the market is strong in South Lake Union — Vulcan Real Estate is building a headquarters campus for Amazon.com nearby — and because "The Times is looking for more revenue," Wood said.

The newspaper's advertising revenues have plummeted this decade as competition from the Internet has intensified.

In March the company put its Maine newspapers up for sale to help pay down debt. While a prospective buyer signed a letter of intent this week, the sale has been slowed by a lawsuit and other complications.

Seattle planners are considering allowing taller buildings and greater density in South Lake Union. Wood said prospective buyers recognize that's likely, and The Times would realize the benefit in any sale.

The newspaper occupies about 40 percent of the 1000 Denny Building and leases out the remainder. Wood said The Times plans to lease back part of the eight-story building if it is sold.

An office or residential building could be built on the Troy Laundry block, he said, although the brick and terra-cotta facade of the 1927 laundry building is a historic landmark and would have to be preserved.

The Times sold six acres in South Lake Union to Vulcan in 2004 for $30 million. If 1000 Denny and the Troy block are sold, the company holdings in the neighborhood would be reduced to just two blocks totaling five acres.