Seattle’s 70-Year-Old University Village Heads to Simon Property Group

• Simon Property Group has agreed to acquire University Village, a nearly 600,000-square-foot open-air shopping center near the University of Washington in Seattle.
• The property features more than 100 retailers, restaurants and service businesses, including Apple, Aritzia, Lululemon, Crate & Barrel and Din Tai Fung.
• Financial terms and the purchase price have not been disclosed, with the transaction expected to close in the fourth quarter of 2026.
• University Village has expanded from approximately 300,000 square feet to nearly 600,000 square feet since its current ownership group began reshaping the property more than 30 years ago.

What Simon Property Group Is Acquiring in Seattle

Simon Property Group (NYSE: SPG) is expanding its retail portfolio in the Pacific Northwest after agreeing to acquire University Village, one of Seattle’s best-known open-air shopping destinations. Located north of downtown near the University of Washington, the nearly 600,000-square-foot property combines national retailers, locally operated boutiques, restaurants and service businesses. Its tenant lineup includes Apple, RH Gallery, Crate & Barrel, Room & Board, Sézane, Lululemon, Aritzia, Vuori and Din Tai Fung. The acquisition will bring an established retail destination into Simon’s portfolio. The company said the transaction reflects its focus on distinctive, high-quality properties in strong markets. Simon CEO, President and COO Eli Simon called University Village an “exceptional retail destination” and said the company looks forward to building on its success for shoppers, retailers and the greater Seattle community.

What the Existing Owners Built Over Three Decades

University Village opened in the 1950s and has evolved considerably under its current ownership group. Susie Plummer, partner and general manager, said the center began at approximately 300,000 square feet before growing to nearly 600,000 square feet.

“More than 30 years ago, we set out to create more than a retail space,” Plummer said. She described the original vision as a neighborhood gathering place where local and regional businesses could operate alongside national brands.

The property's growth has been built around a mix of established retailers, independent businesses and dining options. That tenant diversity has helped University Village maintain a distinct identity as both a neighborhood shopping destination and a regional retail draw. The ownership group has not publicly disclosed the sale price or provided details about the financial structure of the agreement.

What Seattle’s Retail Market Means for the Acquisition

Simon is entering a market where established retail locations continue to attract investor attention. According to Kidder Mathews’ third-quarter 2026 Seattle retail report, direct vacancy across the Puget Sound market stood at 3.9%, compared with 3.8% a year earlier. The region recorded approximately 466,000 square feet of positive net absorption during the first three quarters of 2026. Average asking rents were $23.16 per square foot, unchanged year over year. The report also found that retailers are increasingly selective, favoring established locations and smaller, efficient store formats. That backdrop supports the appeal of an established destination such as University Village, with a substantial existing tenant base and a long operating history. For Simon, the acquisition adds a high-profile Seattle asset with a combination of national credit tenants, independent retailers and dining operators. For landlords and retail investors, the transaction highlights the value institutional buyers continue to place on well-positioned centers with differentiated tenant mixes and established customer traffic.

What Happens After the Sale Agreement

The transaction is expected to close in Q4 2026, subject to customary closing conditions. Neither Simon nor University Village's current ownership group has announced specific plans for redevelopment, tenant changes or operational restructuring. The immediate significance is the change in ownership of a nearly 70-year-old Seattle retail destination. Simon gains a major open-air center near the University of Washington, while University Village enters its next chapter under one of the country's largest retail property owners.