A German lender says a landmark downtown Seattle office tower has literally been left out in the rain, accusing Blackstone’s property arm of letting the 23-story Exchange Building fall into disrepair as water crept in and maintenance slipped.
In a lawsuit, DekaBank claims years of persistent water intrusions and deferred facade work have left the historic high-rise needing big-dollar fixes. A consultant hired by the lender pegged short-term repairs at about $17.2 million, with another $13.1 million for longer-term reserves. On-site staff allegedly reported active leaks on several floors, and the complaint says the problems have been around since at least 2018.
DekaBank filed the complaint last week, alleging that Blackstone Property Partners failed to live up to a carry guarantee tied to a 2022 refinancing and let the building’s exterior envelope deteriorate. Blackstone has fired back that the claims are “without merit.”…