City Hall is setting an example for a resurgence in Anchorage real estate, both commercial and residential. Quite literally: the Municipality of Anchorage closed a transaction last month to finally own its headquarters building, ending nearly fifty years as a renter. At the same time, Mayor Suzanne LaFrance is seeing progress toward her goal of adding to the city’s housing stock.
Own Your Own
Since 1979, the municipality has paid approximately $60 million in rent to occupy the eight-story City Hall building on Sixth Avenue. The purchase price totals $35.5 million, structured as a thirty-year leaseback agreement with J.P. Morgan.
City officials anticipate saving about $300,000 annually. Although lease payments are increasing to about $2.3 million from $1.8 million, the city’s share of maintenance costs is expected to decrease to $1.3 million from $2.1 million.
The opportunity to buy the building from Mark Pfeffer, who owned City Hall since 2001, arose when the latest lease term expired at the end of 2025…