New Convention Hotel Project Eyed for Seattle’s Downtown

By Alex Girda, Associate Editor

Seattle’s growth has manifested itself in office and multifamily development, along with entertainment, in recent years. With a new sports arena planned and a number of franchises from the top sport associations being courted to relocate to the Emerald City, a new convention center hotel is the latest project to be unveiled.

According to the Seattle Post-Intelligencer, local development company R.C. Hedreen Co. has set its sights on constructing the largest convention hotel project north of San Francisco. The high-rise property would stand 43 stories tall on a city block located between Eighth and Ninth avenues, replacing a Greyhound bus station that is currently slated to move to a new location. The tower would offer guests a 1,500-key hotel, as well as around 150,000 square feet of meeting and ballroom space, making it the second-largest facility of its kind, trailing only the Washington State Convention Center.

With an opening tentatively set for 2017, the project would feature a six-story podium that will also contain around 40,000 square feet of retail space, the hotel’s lobby and an affordable-housing component. The project aims to fill a void of new convention and meeting space, as the developer claims that around 100 conventions backed out of Seattle due to a lack of openings. The property would cash in on that existing demand and provide a space that would also boost the area’s hospitality stats.   

Bellevue Gains Brand-New Mixed-Use Project as Area Development Picks Up

By Alex Girda, Associate Editor

Seattle’s greater metro area is reaping the benefits of the city’s improving real estate market. And with the positive influence of Microsoft, Amazon, Boeing and Google, the amount of new jobs is bound to attract professionals in need of housing. That is most likely what SRM Development is betting will happen, as the company recently announced plans to start construction on a new mixed-use project in downtown Bellevue, The Puget Sound Business Journal reports.

The project calls for 258 residential units, as well as 32,000 square feet of commercial space. But first the 2.8-acre plot of land will be subjected to a cleanup operation to rehabilitate it to a fit-for-development state. According to official information, the land suffers from soil and groundwater contamination, as well as improper care of the area due to the former presence of a dry cleaner, a gas station and an auto repair shop, according to the PSBJ. The site also housed a KFC, a Goodyear tire store and the Mustard Seed Tavern.

SRM was originally working with Denver-based Frontier Renewal on the project, but Frontier ultimately opted to sell its stake in the project. SRM is currently involved in a number of development projects in Bellevue, as well as being in charge of Google’s campus in nearby Kirkland. The company has expressed certainty that the growing number of residential units hitting the market in the immediate future is motivated, so there is no reason to fear overdevelopment.  

Capstone Plans Redmond, Portland Developments

By Alex Girda, Associate Editor

Capstone Partners is moving forward with two new development projects in the Northwest’s largest metro areas. The company acquired a 28-acre site in Redmond from Group Health Cooperative for $32.6 million, with plans to capitalize on Microsoft Corp.’s expansion in the area with a mixed-use community. It is also aiming to construct a grocery-anchored community in Portland, to the tune of about $60 million.

The Redmond site sits at 2464 152^nd Ave., N.E., and will eventually house 1,400 residential units, as well as 1.1 million square feet of commercial space including office, retail and a 300-key hospitality element. The site, formerly owned by Group Health Cooperative, had served as the Group Health Overlake Hospital campus until 2008, the Puget Sound Business Journal writes. With Capstone determined to get planning sorted out for the site, construction could begin as soon as the fourth quarter of this year or the beginning of 2014.

The Portland project is Grant Park Village. The former Albina Fuel property was set to become a 300-unit condominium development, but Capstone, which replaced the Spokane-based developer that was originally working with owner KAL L.L.C., has opted to build apartment units. The development will be anchored by a New Season Market grocery store, which will occupy 34,500 of the available 47,000 square feet of retail space. According to the Portland Business Journal, although the completed development will meet LEED standards, the developer will not pursue certification from the U.S. Green Building Council.

New Hyatt Place to Be Developed Near Angle Lake in SeaTac

By Alex Girda, Associate Editor

Locally based Ariel Development has announced plans to construct a new hospitality facility in the suburban city of SeaTac. The seasoned developer is set to build a new hotel that will operate under the Hyatt Place brand. The investment will have a total value of around $25 million, and will benefit from its placement between the more dense urban areas of Seattle and Tacoma, as well as the nearby SeaTac International Airport.

To be developed at 19518 International Blvd. in SeaTac, the hotel project will progress toward a 2016 deadline. A 150-key Hyatt Place will feature a guest amenity package including a pool, a fitness facility and around 3,000 square feet of meeting space, and will be set near Angle Lake Park, one of the city’s main attractions. The hotel’s opening will create a number of jobs, with The Puget Sound Business Journal placing the number at around 60 to 80 new positions. The project is being designed by architectural firm Linardic Design.

Ariel Development has had its fair share of experience in the area’s hospitality market, having been involved in such projects as the Silver Cloud Hotel at 1100 Broadway and the Silver Cloud Hotel – Stadium at First Avenue South, as well as the Hyatt Place at 620 Denny Way and the Courtyard by Marriott at 618 Second Ave.  

Image courtesy of arieldevelopment.com.

Iconic Seattle Office Building Changes Hands

By Alex Girda, Associate Editor

Seattle’s office market has seen a string of major transactions over the past few years, in particular as areas such as South Lake Union have defined themselves as the next big technology destinations. The investor response is so positive that even companies previously focused on residential assets are now eyeing opportunities in the office sector. A case in point is the recent acquisition of the Dexter Horton building by traditional multifamily developer Gerding Edlen.

The office building was acquired for $76.6 million from LaSalle Investment Management, according to The Puget Sound Business Journal; LaSalle had held the asset since 2006. The 1922-built Dexter Horton building features 15 floors of commercial space, each of which features between 17,000 and 24,000 leasable square feet. The building, named after the entrepreneur responsible for the city’s first bank, underwent an extensive, $34 million renovation between 2002 and 2006. At the time of the transaction, it had an occupancy rate of approximately 90 percent.

Mainly dealing with redeveloping properties into multifamily or mixed-use projects, Gerding Edlen is responsible for some of the most representative projects in Portland’s Pearl District, such as the Brewery Blocks redevelopment. The company is set to kickstart a renovation process of its own at the Dexter Horton building, with its sights set on turning the venue into a viable contender for potential creative office tenants. Gerding Edlen has yet to choose a construction company to handle the reimaging process for the building.    

Image courtesy of dexterhortonbuilding.com

Project Touted as “Greenest Commercial Building” Lives Up to Its Name

By Alex Girda, Associate Editor

In green-heavy Seattle, it takes a lot to really stand out for sustainable design efforts. The new Federal Center South Building, developed by the General Services Administration for the U.S. Army Corps of Engineers, has made headlines for its innovative use of environmentally friendly technologies. And now the Bullitt Foundation has cut out its own niche, with the first commercial building in the U.S. to receive Forest Stewardship Council (FSC) Project Certification

The certification recognizes the Bullitt Center’s use of locally sourced wood from FSC-approved providers, according to The Puget Sound Business Journal. Before winning the title, the building underwent extensive onsite audits of its core and shell by Soil Association Woodwork. Other major green fixtures in the building include an entirely renewable-energy solar power system, a rainwater reuse system and a design that employs a maximized amount of natural light, decreasing the need for electric lighting.  

Built for $30 million near the corner of 15^th and Madison, the six-story, 50,000-square-foot structure aimed at becoming “the greenest commercial building in the world,” thus earning the project quite an amount of media coverage. This latest award seems to reinforce the developer’s initial ambitions. Designed to house the Bullitt Foundation’s six employees, the building’s tenant roster will also include a number of earth-conscious entities, the business journal noted.

Image courtesy of bullittcenter.org

Seattle’s New Skyscraper to Get SLS-Branded Boutique Hotel

By Alex Girda, Associate Editor

Daniels Real Estate and Stockbridge Capital Group are developing the city’s tallest skyscraper in two decades. Their massive $400 million project drew quite a bit of attention when first announced and is now set to get another run as it begins to fill its 43 floors with office and hospitality tenants.

The two companies handling the development process for the Phillipe Starck-designed high-rise recently announced that the SBE Entertainment-owned brand SLS will be opening its first Seattle location in the building.

The SLS Hotel Seattle will occupy floors two through 15 and offer guests 184 rooms from which to choose—all designed with its signature boutique style in mind. The hotel’s amenities will include 20,000 square feet of meeting space, a spa, a fitness facilities and 30,000 square feet of food and beverage outlets. Located at Fifth and Columbia in the city’s downtown area, the new skyscraper will begin construction during the fourth quarter of this year with a 2016 completion date in its sights.    

According to Bloomberg Businessweek, Seattle’s hospitality market was among the frontrunners in the U.S., outpacing more established markets and recording increases in occupancy levels and nightly rates. Therefore, activity has ramped up in the sector, with brands such as SLS eager to get into the local market.

The skyscraper will also feature a generous offering of Class A office space, which in recent years has been the No. 1 driver of the Northwest’s real estate market. Massive office property sales in 2012, spurred on by a substantial growth in the number of available jobs in the area, have skyrocketed the city of Seattle to fourth position in office sales last year, trailing only the usual suspects of New York, Los Angeles and San Francisco. Amazon, Starbucks and Boeing have had a positive influence on the commercial real estate market, with further growth in sight.

For a more in-depth take on this Seattle story, click here.

Downtown Seattle Real Estate Market Set for Two New Deals

By Alex Girda, Associate Editor

Seattle’s commercial real estate market is hitting its cruising speed with a number of high-profile deals set to be closed by the end of the quarter. The Puget Sound Business Journal recently broke the news regarding two acquisitions that are set to be finalized soon. The buyer in both instances is Unico Properties, an entity looking to snap up two of the properties that make up the Harbor Urban portfolio, a joint venture created by Urban Properties in Los Angeles and AREA Property Partners, a New York-based real estate company.

Both located in downtown Seattle, the two properties were part of the Bullit family’s original Harbor Properties portfolio, a venture that was eventually sold to the aforementioned partnership that became Harbor Urban. The two properties in question are the Logan Building, a 10-story office building located on the corner of Fifth Avenue and Union Street, and Pike Place Market, a retail property located near the waterfront of Elliot Bay at the base of a condo building and in the immediate vicinity of the Four Seasons Hotel.  

The Logan Building offers tenants 108,000 square feet of office space in the city’s downtown area. With a strong occupancy rate of around 93 percent, major names currently residing in the five-decade-old building include the Downtown Seattle Association, as well as retailers Butch Blum and Specialty’s Café & Bakery. The Pike Place public market includes retailers such as Cinnamon Works, Crepe de France, Hands of the World, Johnson Berry Farm, Marakesh Leather and The Great Wind-Up. The anchor tenant is Pike Brewing Co.

Image courtesy of harborportfolio.com

Schnitzer West Raises Funds Through Office Sale for Speculative Industrial, Office Development

By Alex Girda, Associate Editor

Schnitzer West has completed the sale of a number of office buildings in Bothell, The Puget Sound Business Journal recently wrote. They marked only the latest activity by the company in the South Puget Sound submarket. It is also reportedly gearing up to develop industrial properties in the area and is searching for good spots for office development.  

Schnitzer West sold seven office buildings to Eastside investor Stan Rosen as part of a portfolio traded for $25.8 million. The assets are located in Bothell, in the North Creek office campus. The deal was made for a 126,000-square-foot campus and Tech Center II, an office building totaling 31,000 square feet. The deals are reportedly fundraising for Schnitzer’s two major office developments in the greater Seattle area: Madison Centre and a Bellevue project.

Where industrial real estate is concerned, the company looks intent on developing property in South Puget Sound, following a pattern it has pursued with Valley Avenue Business Park in Puyallup. After Schnitzer West completed development on that 443,000-square-foot business park and had leasing in place for the facility, it sold it for $41.6 million.

With a proven business model and the industrial market improving in Pierce County, the company stands a chance of achieving a profitable investment on its development slate. Speculative development is popular in the South Puget Sound, according to the PSBJ, with as much as 2 million square feet of industrial space set to start construction in 2013.

Image courtesy of valleyavenue.com

Skanska USA Commercial Development’s First Seattle Effort Holds Groundbreaking

By Alex Girda, Associate Editor

Major construction firm Skanska recently held a groundbreaking ceremony for the first project that the company’s USA Commercial Development team has handled in Seattle. Stone34 is a mixed-use facility that will offer office and retail space in a sustainable environment, one that keeps in line with the firm’s eco-friendly construction philosophy. Skanska USA Commercial Development also has a number of other projects lined up for the greater Seattle area, with the submarkets of South Lake Union and Bellevue currently targeted for a number of projects.

Stone34 was designed to become a door opener for the Burke-Gilman Trail, and will serve a diverse population for the area. It features ground-floor retail and four levels of office space totaling 129,000 square feet. In addition, 8,500 square feet of outdoor pedestrian space is included in the building plans. Features will also include wide sidewalks, group seating, plaza spaces and bike rails designed by landscape architect Swift & Co. The ground-floor spaces arranged by Skanska were an essential design feature for Stone34’s anchor tenant, Brooks Sports Inc.

One of the flagships for the city’s Deep Green Pilot Program, Skanska’s Stone34 is pre-certified LEED Platinum, and plans call for the structure to employ hydronic heating and cooling, stormwater capture and reuse, as well as designs that allow for an increase in day lighting and the lowering of summer heat loads. The building’s idea of connecting two different areas is striking the fancy of the Fremont Chamber of Commerce. According to the chamber’s executive director, Jessica Vets, the entity is “thrilled that such a cutting-edge, green development is being built in this key location,” also mentioning the fact that “Stone34 will be a bridge connecting Fremont with Wallingford and shows how beneficial community connectivity is for all.”

The Seattle Deep Green Pilot Program calls for water and energy usage levels to be reduced by at least 75 percent of comparable buildings. With completion set for 2014, LMN Architects’ design will be ready for use starting next spring.

Rendering courtesy of skanska.com

Kilroy Snaps Up $170M Office Property in Booming South Lake Union

By Alex Girda, Associate Editor

The Westlake Terry office property in Seattle’s coveted South Lake Union was recently the object of a $170 million transaction. Vulcan Real Estate and occupant Group Health Cooperative sold the Class A office property to noted real estate investment firm Kilroy Realty Corp., an entity that in recent months has ramped up its spending in the Pacific Northwest.

South Lake Union is one of the fastest-growing office markets in the United States, and sustained activity from online retailer Amazon.com and tech giant Microsoft Corp. has cemented the neighborhood’s appeal.

Located on an entire city block at 320 Westlake and 321 Terry Ave. North, the 320,399-square-foot Westlake Terry office campus was built in 2007. It is set on a major transit line, with other mass transit arterials located in the immediate vicinity. The two-building property has earned a LEED Gold certification from the U.S. Green Building Council, making it much sought after.

The campus is entirely leased, with Microsoft and Group Health Cooperative occupying more than 85 percent of the space.

Westlake Terry’s occupancy figures are a clear indicator of the healthy office market that Seattle in general and South Lake Union in particular have been experiencing over the past few years. Data provided by Marcus & Millichap Real Estate Investment Services indicates that national vacancy rates are on a slight downward trend, while Seattle’s vacancy numbers have taken a dive since 2009. The strengthening market is a positive indicator for the local office market, a trait investors clearly appreciate.

For more on the sale, turn to “Vulcan Sells Kilroy $170M, 321 KSF Office Property” on cpexecutive.com.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com

Rockefeller Group, Sterling Realty Plan Bellevue Office Complex

By Alex Girda, Associate Editor

New York-based real estate company The Rockefeller Group is partnering with local entity Sterling Realty Organization on development of a 2.4 million-square-foot mixed-use office-and-retail complex on a 5.5-acre lot owned by Sterling Realty and located in Bellevue’s downtown area. The project will progress in phases, based on demand.

Located between NE Eighth Street and 106^th Avenue, next to the Pedestrian Corridor and  Key Bank, the site comprises five adjacent land parcels. According to the partnership, the earliest drafts of the plan call for a three-tower office complex on top of retail space. It will also include a public area featuring a number of top cultural amenities.

Rockefeller Group President & CEO Kevin Hackett said Bellevue “has become a dynamic ’24/7’ city – the type of vibrant urban environment on which our company has always focused when seeking office development and investment opportunities.” The Rockefeller Group is an 85-year-old entity that owns, develops and invests in real estate assets, with a portfolio that includes 7 million square feet of Class A office properties.

Image courtesy of Jelson25 via Wikimedia Commons. 

Turn to CPExecutive.com for more on this deal.

Essex Property Trust Closes Multifamily Deal with Kauri, Which is Also Set to Begin Construction

By Alex Girda, Associate Editor

Bellevue-based real estate company Kauri Investments recently completed the sale of one of its Seattle multifamily properties. The company has sold The Annaliese apartment building to Essex Property Trust for a reported $19 million, The Puget Sound Business Journal writes. The company is also intent on developing a new Seattle property, one that would be similar to the mixed-use development in which The Annaliese is situated.

  The development includes a 160-key Hyatt Place hotel that was not included in the sale. Developed in 2010, the complex is located at 110 Sixth Ave. N., near Seattle Center. According to PSBJ, the sale was not planned by Kauri, but an inquiry by Kidder Matthews representatives Giovanni Napoli and Phillip Assouad, working on behalf of Essex Property Trust, eventually got the deal going. According to Kauri’s CEO, Kevin Angier, the 56-unit multifamily rental property had an occupancy rate of 95 percent at the time the transaction was completed.

Kauri Investments has also announced plans regarding a development that has a lot in common with the Annaliese-Hyatt Place project. The company is set to begin with the construction of a 46-unit apartment building and a Hyatt House hotel that would offer guests 126 rooms. Tentatively located at Fifth Avenue North and Broad Street, the development would capitalize on both the upward trend that multifamily properties have seen in the greater Seattle area during the past months and the strengthening hospitality market of the Pacific Northwest.

Image courtesy of arieldevelopment.com

Vulcan Real Estate Debates Multifamily Developments as Project Pipeline Grows Longer

By Alex Girda, Associate Editor

With all the real estate talk of the town focused on Amazon.com’s endeavors, the commercial market has been getting plenty of attention. But the residential market also hit its stride in 2012 and local development giant Vulcan Real Estate is not immune. According to the Puget Sound Business Journal, it is intent on developing a new multifamily property.

Vulcan is currently assessing market conditions and determining whether a construction start would be opportune. Tentatively set at 4041 N.E. Roosevelt Way, the 216-unit residential project would also include a 150-space underground parking facility, as well as the inclusion of 3,600 square feet of retail space. The proposed development is in the city planning phase, and yet Vulcan is still debating whether it will immediately go ahead with construction of the seven-story structure, according to the local business publication.

The project is somewhat unusual for the Paul Allen-controlled entity, as the company has to date focused its attention on South Lake Union, its only  development outside the submarket being the Martin apartments, an ongoing residential project next to the Cinerama Theater. The Seattle Housing Authority is currently considering Vulcan, along with a number of other developers, for the redevelopment of the Yesler Terrace public housing project in First Hill, while the company is also set to develop a City Hall complex for the city of Bothell. However, the municipality currently has that last project on standby.

Image courtesy of the City of Seattle at seattle.gov.

Amazon’s Denny Triangle Campus Phase One Gets General Contractor in Sellen

By Alex Girda, Associate Editor

Amazon.com announced the contractor that will be taking charge of the first phase of its Seattle campus in the downtown area of Denny Triangle. The tech giant has named local company Sellen Construction for the much-talked-about development in downtown Seattle, the Puget Sound Business Journal wrote.

Sellen has handled a number of high-profile Seattle projects in the past, including the redevelopment of the PacMed Tower, which interestingly enough was Amazon’s headquarters at the time it was finished, as well as the green and tech-laden Federal Way South redevelopment. That last project, previously referenced on this page, was handled for the U.S. Army Corps of Engineers.

For the Denny Triangle project, Sellen will construct a 37-story office tower on Seventh Avenue, as well as a 2,000-seat gathering space. Plans filed by the developer indicate that a retail component is also part of phase one, as well as an underground parking facility that will accommodate around 1,000 cars. A groundbreaking won’t be held soon, although reports this summer placed the start of the construction process sometime during 2013. But now that most of the approvals are in place and a general contractor has been selected, there should be no major stalls to keep Sellen from building phase one of the three-block, NBBJ-designed Amazon campus.

Sellen Construction has handled major projects such as the Russell Investments headquarters in Tacoma, a 273,453-square foot office building; and the 1973-built Safeco Tower, another 270,000 square-foot office building. Other projects include the Tommy Bahama Corporate headquarters, the Vulcan Real Estate-owned South Lake Union campus that has housed Amazon.com, the Skyline Tower in Bellevue and many others.

Rendering courtesy of archpaper.com

Amazon.com-Occupied Office Tower Trades Hands, Expands in Denny Triangle

By Alex Girda, Associate Editor

Amazon.com is the bona fide engine of Seattle’s office market. If evidence of that fact up until this point is still deemed unconvincing, just take a look at the recent Amazon-involved headlines. West 8^th, the online giant’s new residence was recently purchased in a deal, which according to public records stood at around $278 million. The entity that acquired the office property is associated with AEW Capital Management, a Boston-based company that deals with institutional and private investment.

The 28-story building is located at the corner of 8^th Avenue and Virginia Street in downtown Seattle. Completed in 2009, the construction was previously owned by local company Touchstone Corp. alongside Prudential Real Estate Investors. After a couple of rough years during which the building failed to secure a major tenant and lay mostly unoccupied, Amazon finally snapped up most of the available space.  

In more Amazon-related news, the tech company has seen its plans for the proposed Denny Triangle campus approved by city planners recently. No less than three million square feet of office space are to be built in the area through six high-rise buildings with heights of up to 38 stories. The project also calls for a meeting center to be built including a 2,000-seat hall, retail venues, parking facilities to accommodate most of the employees, transportation improvements for the area, dog areas and garden terraces, the Seattle Post-Intelligencer noted.

Amazon is not finished with the plan yet, as the approval is still available for public appeal and changes recommended by the Design Review Board. The company has included a number of measures that it will support to avoid overcrowding the area with its development. These measures include: a third streetcar, $50,000/block for signal timing modifications, the reduction of single-occupant car use to no more than 21 percent of cars driving to the site during rush hours.

Photo courtesy of west8th.com 

Rendering courtesy of djc.com

South Lake Union Set for Rezoning Overhaul

By Alex Girda, Associate Editor

South Lake Union is growing at a frantic pace. Some developers are pitching office high-rises in hopes of scoring one of the big names that are constantly circling the neighborhood’s available office space, while others are proposing the next young-professional-oriented multifamily building. However, growth must be sustainable, and there are some skeptics that believe that the boom should be controlled and harnessed in a way that would prevent a possible new market breakdown. Vulcan Realty is not among those skeptics.

The company is proposing three high-rises close to the shore of Salt Lake Union. The Paul Allen-controlled entity claims that view corridors would be enhanced by the building of the 24-story-tall buildings, although there are people who oppose the project, claiming it would damage the aesthetic of the neighborhood, should the signature views of the lake be obstructed. The city is currently in talks to get a rezoning plan for South Lake Union that would allow the construction of 40-story towers in the area. However, Vulcan was hoping to be able to develop three 240-foot-tall towers near the shores of Lake Union in exchange for land and its contribution to important public benefit works.

Essentially, should its proposal be approved by the city council, Vulcan will hand over 37,600 square feet to the project called Real Investment in Social Equity that would get the area between Mercer and Republican streets affordable housing units, childcare services and a community kitchen. The 1.5 acres of land the city is hoping to amass for the initiative include 17,000 square feet of already owned land and another 12,000 square feet currently under private ownership. According to Vulcan Realty, the land the city would be getting is valued at around $10 million.

Rendering courtesy of djc.com

Seattle’s Booming Office Market Prompts Developers to Dive In Head First

By Alex Girda, Associate Editor

The local office market has seen a number of blockbuster transactions this year, illustrating high interest in what Seattle has to offer. In fact, there doesn’t seem to be enough space to go around, and developers like Skanska USA are currently considering speculative construction, Skanska on its 400 Fairview Ave. N. project. Seattle’s uptick in rents and vacancy drop have created an environment that could argue in favor of such a move, The Puget Sound Business Journal reports.

The South Lake Union office project would call for a 12.5-story building to be constructed on Fairview Avenue N. The structure would offer about 350,000 square feet of prime commercial office space in one of the fastest-growing tech neighborhoods in the entire country. However, the large development would have to wait for some zoning changes, and the city has been trying to redefine the building guidelines for the area for close to a year now. The first quarter of 2013 should be the deadline for the zoning changes; should the company decide to proceed with development, it has the possibility of applying for a text amendment that would allow it to build such a large project.

The 400 Fairview development was designed by SkB Architects and includes a top-floor private deck that could be used for corporate events with food and drink. The ground-level “Market Hall” would include a number of small retail spaces, while a multi-entry hall could be available for client greetings and tenant gatherings.

Image courtesy of skanskahub.com

The Hilton Portland and Executive Tower Sells as City Contemplates Beefing Up Its Hospitality Figures

By Alex Girda, Associate Editor

A Chicago-based investor has recently acquired The Hilton Portland and Executive Tower, the Portland Business Journal reports. The transaction is speculated to be worth approximately $100 million, which is not a staggering amount, considering the fact that the property is the city’s largest hotel. In fact, the per-room sale price comes in at about $128,000, less than half of what it costs to develop a hotel room in downtown Portland. The party buying the Portland Hilton is a partnership created by Chicago-based companies Walton Street Capital and Lodging Capital Partners L.L.C.

The Hilton is a 782-key property located in downtown Portland, at 921 S.W. Sixth Ave., and is also the largest property of its kind in the entire state of Oregon. It offers guests a variety of rooms, ranging from the more affordable Accessible Rooms and Guest Rooms to the upper-tier Suites and Executive Rooms. Executive Rooms offer guests 20th-floor views, business desks, 37-inch flat panel TVs and leather recliner chairs, as well as a complete office package including a printer/copier/fax/scanner unit. Additionally, the hotel offers 66,000 square feet of versatile meeting space, including 30 function rooms operating with expert staff. Dining options include the on-site Bistro 921, an informal, American-themed eating spot, as well as the Italian-branded Porto Terra Tuscan Bar and Grill. Pool and fitness facilities are also provided courtesy of the full service Hilton Athletic Club, while the 24-hour business center offers free high-speed Internet access.

According to the Portland Business Journal, the sale of The Hilton Portland could spur on talks of developing a new Hyatt Regency-branded facility near the Oregon Convention Center. This would provide a considerable bump in the amount of available rooms the city has to offer, while also encouraging larger events to come to the emerging city.

Image courtesy of hilton.com

1201 Third Ave. Tower Nears Deal

By Alex Girda, Associate Editor

Seattle has seen its fair share of massive office deals this year, with the most prominent of them the acquisition of the Russell Investments Building and Amazon.com’s move to buy its office campus from Vulcan Real Estate. Next on the list is the 1201 Third Ave. tower downtown. Estimates from real estate professionals have placed the eventual transaction value at around $500 million, but new reports have the building trading more in the $550 million range.

According to “Real Estate Alert” and the Puget Sound Business Journal, a partnership of insurance giant MetLife and real estate investment management company Clarion Partners is now vying for the property, as is Caisse de Depot et Placement du Quebec’s real estate unit, Ivanhoe Cambridge.

The seller is Boston-based Beacon Capital. The 55-story building offers up 1.1 million square feet of space, 20 percent of which is currently vacant. No reports on the status of the deal have transpired yet, but the increasing buzz clearly indicates that the completion is growing closer.

1201 Third Ave. is one of four properties that Beacon Capital has put up for sale in the greater Seattle area. The other three have been bundled together as a single deal and include U.S. Bank Plaza, Plaza East and Plaza Center, all in nearby Bellevue. They were acquired by the company in 2007 as part of a 42-building portfolio acquisition. Beacon paid $6.4 billion to Blackstone to secure the massive office portfolio.