Microsoft Office Lease Boosts $225M Redmond Property Sale

Preylock acquired the seven-story One Esterra Park building in Redmond for $225M, the largest office sale in the Seattle area so far this year.
The fully leased property sits just four miles from Microsoft’s global headquarters.
The deal reflects growing investor confidence in high-quality, tenant-secured office assets amid broader market uncertainty.

Key Takeaways

Microsoft-Tied Redmond Office Sells For $225M

A major office building just south of Microsoft’s headquarters in Redmond has changed hands, reports CoStar. The property sold for $225M, making it the most expensive office sale in the Seattle area so far in 2025.

The buyer, Preylock, a California-based investor with a growing tech-focused portfolio, picked up the seven-story One Esterra Park property, which is fully leased to Microsoft.

Institutional Capital Returns To The Eastside

This latest transaction is another sign that Seattle’s Eastside submarket is regaining traction with institutional investors. The area is home to tech giants like Microsoft and Amazon.

According to CoStar, office investment in the region hit $800M in the first half of 2025, the highest since early 2022. Analysts say buildings with creditworthy, long-term tenants are leading the rebound.

“Core assets with strong tenants are seeing premium pricing again,” said Elliott Krivenko of CoStar. “We expect this momentum to carry into 2026.”

Preylock Doubles Down On Redmond

This is Preylock’s second Redmond acquisition in under a year. The firm also bought an Amazon-leased building in the city’s downtown for $58M in December.

Preylock, which owns over $4B in office and industrial assets, has a track record of focusing on properties tied to tech and logistics firms. In 2023, the company sold its former Silicon Valley headquarters to Nvidia for $374M—an early sign of growing office demand from AI firms.

Building Background

One Esterra Park was developed by Capstone Partners and PGIM in 2021. Microsoft has occupied the space since completion. Located at 15550 NE Turing Street, the property adds to Microsoft’s sprawling real estate footprint in the region.

Outlook

With major players like Microsoft and Amazon anchoring key properties, Seattle’s office sector is seeing renewed activity, especially on the Eastside. Investor appetite appears to be recovering—at least for buildings with the right fundamentals: modern construction, strong tenants, and long-term leases.

As 2026 approaches, expect continued interest in similar assets—particularly in tech-heavy submarkets like Redmond and Bellevue.