The Deal Sheet
The mixed-use Thornton Place has bagged the first Silver LEED for Neighborhood Development (LEED-ND) cert in Seattle. Rather than focusing on single buildings, the designation rates entire green neighborhoods. (That way, you know you're neighbors are recycling.)
Stellar Holdings is the primary owner of the mixed-use property, which includes 387 apartments, 50k SF of retail, and a 14-screen Regal IMAX cinema. It's the second development in the state to receive LEED-ND, following the City of Seattle's certification of the South Lake Union neighborhood in 2011. Thornton Place is the first privately developed property in Washington to receive the higher Silver cert. According to Stellar Holdings VP Tim Ainge, the goal wasn't just to revitalize an aging Seattle neighborhood, but make a new one. Among other features that won the gold: Thornton Place is a brownfield redevelopment, it's TOD and walkable, there's a sizable greenbelt, and the apartments and other stuctures are LEED certified.
A JV between Skanska USA Commercial Development and Deutsche Asset & Wealth Management's real estate investment business (formerly RREEF Real Estate) are preparing to break ground next month on Alley 111, a 12-story multifamily development in Bellevue. The property will include 260 apartments, as well as 188k SF of commercial space and 247 parking spots. Units will be available for pre-lease in mid-2015.
Healthcare Realty Trust, a Nashville-based REIT, bought First Hill Medical Building, an 82k SF, two-building MOB in Seattle for almost $35M. The property, which is fully occupied, is comprised of a three-story, 71k SF main building (516 Boren Ave) and a two-story, 11k SF annex building (515 Minor Ave). CBRE repped the seller, First Hill Medical LLC; the marketing team included Tom Pehl, Lou Senini, Chris Bodnar, Lee Asher, Paul Carr, and Steven Perovich.
Essex Property Trust bought Slater 116 in Kirkland from MainStreet Property Group for more than $29M. The recently completed property includes 108 apartments and more than 10k SF of ground-floor retail space. JLL managing director David Young and SVPs Corey Marx and Seth Heikkila facilitated the transaction. David says that Gen Y workers in the area are fueling demand for newly constructed multifamily units, even at premium rents (provided they have premium amenities). Kirkland's estimated average household income is more than $101k, and its apartment vacancy rate is 4.2%.
Market Leader, a division of Trulia, inked a lease to occupy the top two floors of 110 Atrium Place in Bellevue, only a few blocks from where the company was founded in 1999. The company, which has an option to take more space in the future, is expected to move into its new digs late this year, as the 70k SF space is modernized into an open-area work environment. The brokers involved in the deal were Colliers International's Bret Jordan, Mike Schreck, and Sam Ziemba, as well as Washington Partners' Brian Kelly and Eric Lonergan.
HFF arranged $38M in financing for a seven-property industrial and flex office portfolio totaling over 1M SF in California, Colorado, Missouri, and Washington. The company worked on behalf of a JV between Oaktree Capital Management and ScanlanKemperBard Cos to arrange an adjustable-rate loan through Latitude Management Real Estate Investors. The loan was used to acquire the portfolio. The portfolio's Washington state properties were the 103k SF West Valley Distribution Center at 6837-6851 S 190th St in Kent and the 181k SF Andover Executive Park in Tukwila. The HFF team repped the borrower was Paul Brindley, Lloyd Minten, and Tom Wilson.
JLL hired Trevor Clark as a managing director in its Seattle office, where he will be part of the firm's downtown leasing team, repping institutional owners and other major office landlords. Trevor joins JLL from Broderick Group, where he specialized in downtown Class-A office space, repping more than 3M SF of such space.
Seattle-based Colliers International tapped Jessica Hayden as executive managing director, account operations. Prior to joining Colliers, Hayden was executive director at JLL. She will be based in Colliers' Atlanta office.