Fred Hutchinson Cancer Center has expanded its regional real estate footprint with the acquisition of a former DaVita office building in Federal Way for $18 million. The transaction adds another large office asset to the cancer center’s holdings as it continues to grow its presence across the Puget Sound region.
The seller, Realty Income, originally acquired the property from Weyerhaeuser in 2012 for $19.8 million. The building totals 87,617 square feet and is situated on a 10.3-acre site at 32275 32nd Ave. S. in Federal Way. The campus includes 632 parking spaces, offering substantial on-site parking capacity to support future clinical, administrative or other institutional uses.
Realty Income was represented in the sale by a Lee & Associates team comprising John Bauder, Harrison Laird, Alex Muir and Stuart Williams. The brokerage team marketed the former DaVita facility as an office asset, and Fred Hutchinson Cancer Center emerged as the buyer in the completed transaction. Specific plans for the property were not detailed in the announcement.
The purchase follows a series of recent real estate moves by Fred Hutchinson Cancer Center that underscore its long-term commitment to the region. In 2024, the institution acquired the lab building at 1165 Eastlake Ave. E. from Alexandria Real Estate Equities Inc. for $149 million, adding a significant life sciences facility to its portfolio. That deal further consolidated Fred Hutch’s control over key properties in its core research and clinical hub.
Beyond direct acquisitions, Fred Hutch has also pursued partnership structures to secure strategically important assets. The cancer center entered into a joint venture with Alexandria Real Estate Equities Inc. for a 70% interest in the Lake Union Steam Plant and Earl Davie Building. The joint venture arrangement gives Fred Hutch a substantial stake in these properties while aligning its interests with a major life sciences real estate owner.
Fred Hutchinson Cancer Center currently operates 10 clinical sites across the Puget Sound region. Its flagship outpatient facility, the Fred Hutch Sloan Clinic, is located in Seattle’s South Lake Union neighborhood and was previously known as the South Lake Union clinic. The clinic network, combined with ongoing acquisitions and joint ventures, reflects a strategy of securing key locations to support clinical care, research and related operations over the long term.
The Federal Way acquisition adds a large, parking-rich office asset to this network, complementing Fred Hutch’s existing urban holdings in Seattle. While the announcement did not disclose any redevelopment timeline or intended program for the newly acquired property, the transaction continues a pattern of Fred Hutch using real estate acquisitions and partnerships to support its regional expansion objectives.
