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Bristol I at Southport Scores $27.6M Loan Arranged by Johnson Capital

16 Jun 2014, 4:54 am

By Alex Girda, Associate Editor

Johnson Capital recently completed a financing deal for an apartment complex in Renton, Wash. The company has provided a loan worth $27.6 million for the Bristol I at Southport community, a residential property completed back in 2002. Amos Smith and Sea Skelton, currently with Johnson Capital’s Irvine, Calif., office, worked on behalf of the property owner to arrange the financing for the asset.

Bristol I at Southport is a 188-unit community that includes a commercial real estate component totaling 10,037 square feet of space. The apartment complex is located on 2.22 acres of prime waterfront property at the base of Lake Washington. Comprising four individual four-story buildings, the Class A complex offers two common parking levels with 350 covered, secure parking spaces. The owner is a privately owned company with expertise in mixed-use development focusing on the greater Seattle area.

Southport is one of the most recent waterfront communities in the area, and one of the most appreciated and easily accessible locations. Lake Washington is one of the best-known areas in the Puget Sound, and offers views of the Seattle skyline, the Olympic Mountains and Mt. Rainier. Bristol I also offers accessibility through the proximity of several freeways, close to downtown Bellevue and the Sea-Tac Airport.

The financing measure arranged by Johnson Capital is a 15-year loan that was provided by an insurance company. The owner used proceeds from the loan to retire existing debt on the property and to source funds for a renovation process that includes unit improvements and a new exterior that would maintain consistency between the property and the adjacent Bristol II, also developed by the borrower.

Image courtesy of thebristol.net



Federal Way City Council Approves Performing Arts/Conference Center Project in Unanimous Vote

8 Jun 2014, 4:42 am

By Alex Girda, Associate Editor

Federal Way is set to see a new development initiative, as the city council recently decided to authorize construction of a new performing arts and conference center in the city’s downtown. The measure passed through a unanimous vote this past week, most likely as a direct result of a study conducted by the Mayor’s Blue Ribbon Panel, which showed that the proposed facility would accelerate the development of the area. The estimated cost of the performing arts development project stands at around $32 million.

When constructed, the 700-seat, multipurpose facility will reportedly create a new, more dynamic environment in downtown Federal Way, the investigation revealed. According to the Mayor’s Panel, the development process would generate around $59 million in spending and about 338 new jobs. And the ongoing operations would generate approximately $3.2 million in new spending each year.

The auditorium would also create a new cultural hotspot in South King County, allowing touring acts and performance series to reach an area of the state that has not had access to those types of events. Set to offer a total of approximately 43,500 square feet of space, the building will be located on a four-acre, elevated plot of land in the vicinity of the Federal Way Transit Center and would offer views of Mt. Rainier. The performing arts center will also double as a conference center, with the capability to host local and regional business retreats and workshops. The development initiative will also include a hotel that would be developed by a private entity.  

The site had been owned by the city since 2010, when it used state funds in a purchase deal worth approximately $5 million. The city council then authorized a conceptual design phase, and in 2013 went on to the project design phase, the development of the pro forma and the application for land use permits.

Image courtesy of federalwaypacc.org



Essex Property Trust Expands Seattle-Area Portfolio with Purchase of Collins on Pine

31 May 2014, 4:23 am

By Alex Girda, Associate Editor

In the latest real estate transaction involving a Seattle-area apartment property, Essex Property Trust acquired a high-end residential asset in the Pike/Pine neighborhood for $29.6 million. The upscale community Collins on Pine was in high demand, according to the Puget Sound Business Journal, but the seller, a limited liability company controlled by Metropolitan Homes Corp., selected Essex Property Trust.

Collins on Pine is a 76-unit luxury residential building that offers a number of upper-tier amenities, including a resident lounge with full demonstration, a rooftop barbecue area, a storage area, a bicycle storage space, as well as a fire pit with outdoor TV. The building also offers on-site maintenance and package receiving, a valet dry cleaning service and the Collins Concierge service, providing house cleaning, and other services are available online. The 76 residential units include studio apartments as well as one- and two-bedroom residences. Rent rates at the building range between $1,450 for a studio and $3,705 for the larger, two-bedroom apartments.

Located at 1601 13th Ave., in one of the more vibrant areas of Seattle and a current hotbed for multifamily investment, Collins on Pine is proximite to the nearby Cal Anderson Park and the fine dining options found throughout Capitol Hill. Essex Property Trust has added the asset to a number of other communities it owns in greater Seattle, including Vox Apartments at 1527 15th Ave., Joule Apartments at 523 Broadway E., and The Cairns, at 422 Yale Ave. N.

Image courtesy of essexapartmenthomes.com 



Hines, Oaktree Acquire Triton Towers in Renton

24 May 2014, 3:15 am

By Alex Girda, Associate Editor

One of Renton’s best-known office assets recently traded hands: A partnership of Hines and a real estate fund managed by Oaktree Capital Management purchased Triton Towers. The buyer reportedly paid a fee of around $60 million for the property, making it one of the largest deals to be completed in the area.

Triton Towers is an office campus located on a 19-acre site on the southern shore of Lake Washington. The campus comprises three seven-story steel and concrete buildings that offer a total of 407,107 square feet of office space. The class A office campus offers great proximity to three major freeways – I-405, I-5 and Highway 167 – and is also close to the Sea-Tac Airport.

The campus offers access to a number of parks and the city’s urban trail system, in proximity to public transportation, dining, shopping and cultural venues. Renton has created a name for itself as the world headquarters of Boeing Commercial Airplanes, with a large part of the city’s economy relying on the 278-acre manufacturing facility located in the area.

Ty Bennion, a managing director with Hines, said the international real estate company “could not be more excited about this asset,” which he called “the best located and most distinctive property in the entire Puget Sound region.” Meanwhile, Oaktree Managing Director Mark Jacobs underlined the company’s position in reference to the deal as “pleased to add a high-quality asset such as Triton Towers to our real estate holdings and continue to look for opportunities to grow our portfolio in the Pacific Northwest.”



Portland Residential Community Trades Hands for $50M

18 May 2014, 4:54 am

By Alex Girda, Associate Editor

A California-based multifamily investment firm recently acquired a Portland asset. According to investment brokerage firm HFO Investment Real Estate, the Monterey Springs Apartments in Clackamas County traded hands for $51.25 million. HFO was in charge of arranging the transaction on behalf of both the buyer and the seller, a private equity group from the Midwest.

Monterey Springs Apartments is a 390-unit multifamily property located in the immediate vicinity of Clackamas Town Center. The residential community is located on a 12-acre lot and includes 21 residential buildings, as well as two distinct community facilities. Residents at the property benefit from landscaping features such as a private lake, a water feature, a fitness center, resident covered parking, a cyber café, a common clubhouse and a year-round pool/spa, just 20 minutes away from the city’s core.

According to a press statement announcing the transaction, HFO Investment Real Estate used its extensive network of national investors, and was able to find a number of potential buyers looking to invest in the growing Portland market. The Portland multifamily market has seen a higher pace of deals during recent weeks, with the Pacific Northwest as a whole proving to be a solid investment area for companies active in the residential sector.



HFF, Berkadia Complete Financing Deals for Pacific Northwest Properties

10 May 2014, 4:14 am

By Alex Girda, Associate Editor

Pacific Northwest property owners and real estate investors are completing financing deals for properties as the area continues to develop in an attempt to boost their chances at securing promising properties or improving assets in their existing portfolios. Berkadia Commercial Mortgage LLC and Holiday Fenoglio Fowler LLC both recently arranged financing deals for properties in the region, in Seattle and Portland, respectively.

Berkadia arranged $14.7 million in bridge financing for a mixed-use property at 954 East Union St. in Seattle. The six-story building will open this fall in the immediate proximity of the First Hill Street Car line. The mixed-use property offers 6,000 square feet of ground-level retail space, as well as 79 residential units comprising studios and one- and two-bedroom units.

Handled by Berkadia Commercial Mortgage Senior Vice President Louis Weisman and Hendricks-Berkadia Managing Broker Tim Ufkes, the loan features two six-month extension options and a 79 percent loan-to-cost ratio. The entity owning the asset will use the proceeds for coverage of construction costs and preparation for upcoming financing or a sale move.

The Portland property involved in a recent financing deal is the Woodlark Building in the city’s downtown area. The borrower in this case was a joint-venture between NFN Investments LLC and Arthur Mutual Investments. HFF arranged the $5 million acquisition financing deal used in the purchase of the historic property.

Located at 813-817 SW Adler, at the corner of SW Ninth Avenue, the Woodlark Building was originally completed in 1912, with a number of renovations and a host of improvements carried out at the facility over the past century in an attempt to maintain its relevance. The eight-story property, totaling 43,887 square feet of space, has a current occupancy rate of 91 percent, with a variety of office and retail tenants.

Featured image: author Another Believer via Wikimedia Commons



Schuster Group Sells Joseph Arnold Lofts in Belltown, While Lining Up More High-Rise Residential

2 May 2014, 6:33 pm

By Alex Girda, Associate Editor

A prominent multifamily project in the Seattle neighborhood of Belltown recently traded hands. The Schuster Group sold The Joseph Arnold Lofts for $68.2 million.

The upscale property, which has been marketed as The Joe by developer and former owner The Schuster Group, offers 131 units. The high-rise was completed in 2013 and was developed on a land parcel acquired back in 2008; construction began during the second quarter of 2012. The property’s upper floors offer views of the nearby Olympic Mountains and Elliott Bay. A one-bedroom unit rents at an average rate of $2,985 per month.

The property is also the first high-rise residential building in the city of Seattle to receive Green Globes certification, achieving the Three Globes level, which is the current equivalent of the U.S. Green Building Council’s LEED Gold certification.

The Schuster Group has another high-rise residential project, Walton Lofts, underway a block away from The Joe. Construction began there at the start of this year, on a piece of land acquired in 2013. That property will also pursue Three Globes from the Green Building Initiative, a nonprofit organization that looks to accelerate the adoption of green-minded building practices.

According to the Puget Sound Business Journal, the buyer was an LLC that shares an address with frequent Schuster collaborator Invesco Real Estate, an Atlanta-based property owner that is currently working on expanding its real estate investment portfolio. The company also acquired Bell 206 in Belltown for $41.2 million, as well as the $308 million Bravern Signature Residences in Bellevue, PSBJ writes, a testament to the buyer’s commitment to expand its portfolio in the Puget Sound.

Images courtesy of theschustergroup.com.

 



Sound Transit Awards Mercy Housing Northwest Contract to Build Rainier Valley Affordable Housing

25 Apr 2014, 4:43 pm

By Alex Girda, Associate Editor

Mercy Housing Northwest has been selected by the Sound Transit to develop a new affordable, transit-oriented project in Southeast Seattle. The company has been tasked with the construction of a multifamily complex near the Othello Link light-rail station.

The Othello Station complex in Rainier Valley will be located on Martin Luther King Jr. Way South near Myrtle Street. When completed, it will feature 108 residential units and a ground-floor commercial component totaling around 8,000 square feet of leasable space. The new project, that according to the design concept will be dubbed Myrtle Apartments at Othello Station, will also offer residents an underground parking facility accommodating 50 vehicles.

Aimed at families earning as much as 60 percent of the area’s average income, currently set at around $47,640 for a three-person household, the project will feature a mix of unit sizes. Around two-thirds of the available units will feature a three-bedroom floorplan, part of the local authorities’ initiative to increase the amount of affordable family-size housing in area.

Mercy Housing Northwest has provided the state of Washington with 2,000 residential units over its past 20 years of activity, most of them located in Central Puget Sound. The company recently completed a Columbia City light-rail station complex totaling 52 units for small families, as well as a 62-unit family apartment development in Rainier Beach. According to Sound Transit Board Chair and King County Executive Dow Constantine, “Light-rail is now a part of the community in Southeast Seattle.” Seattle Mayor Ed Murray, who is also a Sound Transit board member, noted that the city is “excited to build on our longstanding relationship with Sound Transit to ensure that this prime site can offer affordable housing to families who could not otherwise afford to live in the city.”

Image courtesy of soundtransit.org



New Housing Facility Breaks Ground at Cornish College of Arts Campus

14 Apr 2014, 6:20 am

By Alex Girda, Associate Editor

Construction has begun on a new housing facility for the Cornish College of the Arts in Seattle. The development team headed by Capstone Development Partners held a groundbreaking ceremony at the Residence Hall and Learning Center at 2025 Terry Ave.

This is the first new building on the campus since the completion of Kerry Hall almost a century ago. Howard S. Wright, a Balfour Beatty company, serves as the general contractor on the Residence Hall and Learning Center, a 20-story building that will include student housing facilities on 16 of its floors, accommodating a maximum of 432 students. The new hall will be constructed at the corner of Lenora Street and Terry Avenue, according to a design provided by Ankrom Moisan Architects Inc.

When completed, the 120,000-square-foot facility will also offer a common kitchen and great room, fitness and media studios, laundry facilities and live-in apartments for the supervisory staff, as well as office space for the Housing and Residential Life offices. According to a press release announcing the construction, 16,000 square feet of space located on the first two floors will be used to hold classes, workshops and various learning activities.

Cornish College of Arts has completed a leasing agreement with City University that allows CU students to stay at the facility. The new building will replace two facilities currently in use by Cornish College and located at Seventh and Eighth avenues following its 2015 completion.

Rendering courtesy of balfourbeattyus.com.



Multifamily Picks Up: TruAmerica Buys, Berkadia Finances Seattle Properties

7 Apr 2014, 4:49 am

By Alex Girda, Associate Editor

The Pacific Northwest saw an upswing in multifamily activity during the first quarter of 2014, with residential deals and projects taking center stage in a market that has been very focused on its office sector. The quarter finished with TruAmerica Multifamily acquiring a West Seattle residential complex through a partnership with Intercontinental Real Estate Corp. The buyers paid $27 million for the property as part a strategy of amassing a $1 billion real estate investment portfolio by next year.

The Westhaven Apartments complex is a 190-unit property totaling 150,100 square feet of space, located on a 6.9-acre lot. Available floor plans include one-, two- and three-bedroom units. The garden-style apartment complex is set to receive new, high-quality in-suite features including appliances, a state-of-the-art fitness facility, a modernized clubhouse and new pool-area furnishings. The property is located just six miles away from Seattle’s Central Business District. Westhaven’s unique style sets it apart from other residential properties in the area, making the investment an important addition to newly created TruAmerica’s portfolio. This is the company’s fifth acquisition, with its current investment total at $238 million, about a quarter of the way to its objective.

Meanwhile, the local office of Berkadia Commercial Mortgage recently completed funding an $11.8 million first mortgage for a SeaTac apartment property. The Sandpiper Apartment Homes is a 163-unit multifamily complex owned by Sandpiper Ventures LLC. Berkadia secured the 35-year, fixed-rate loan through HUD’s 223(f) program, a press statement shows.

Sandpiper Ventures will use the mortgage proceeds to refinance prior debt on the property, as well as to implement a series of improvements. The community will undergo complete kitchen and bathroom remodels in all 163 units, as well as add a number of energy efficiency enhancements to reduce energy and water consumption. The nine-acre property is located near an upcoming light-rail station, set to begin service in 2016. The resident amenity package at Sandpiper Apartment Homes includes fitness facilities, a common playground and a swimming pool.   







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