Two state-owned commercial buildings one block from the Capitol Campus are up for sale, opening half a downtown Olympia block to private buyers for the first time in more than 40 years.

The Department of Enterprise Services listed the 1007 Washington Street Building and the Union Building for public sale on July 21, according to a DES news release issued Aug. 5. The properties sit next to each other at 1007 Washington St. SE and 120 Union Ave. SE, together filling half a city block.

The Washington Street Building, built in 1953, is 14,308 square feet and vacant. Its appraised value is $750,000. The Union Building, built in 1956, is 13,990 square feet with five commercial tenants still operating inside. It is appraised at $1.99 million.

Five businesses face lease uncertainty. DES has not publicly identified the Union Building tenants or addressed what happens to their leases once a buyer closes.

DES Chief Operations Officer Jo Aiken said in the Aug. 5 release that the properties have outlived their usefulness and that selling them is the responsible, cost-effective choice. Aiken said the agency sells assets government can do without so public dollars are spent wisely.

The state purchased both buildings in 1982 because of their proximity to the Capitol Campus, intending them for future government use. DES said the properties were never improved after that purchase. The agency now cites hybrid work policies and a push to consolidate office space as reasons the buildings are surplus.

The Legislature directed DES in 2025 to sell the properties for no less than appraised value. State law gave preferred entities, including local, federal and Tribal governments, a 60-day window to express interest before the open market. That window opened May 20 and expired before the public listing began July 21, suggesting no government buyer stepped forward.

Both properties are listed on GovDeals, the state's online auction platform. As of Aug. 10, the Washington Street Building shows a starting bid of $450,000 with the auction closing Oct. 7. The Union Building shows a starting bid of $600,000, closing Oct. 8. Final sale prices must still meet or exceed the appraised values set by the Legislature.

The combined appraised value of the two parcels is $2.74 million.

The Olympian first reported the sale on Aug. 8.