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