The Deal Sheet
There's no guarantee of residential success, even with high demand. Vulcan residential guru Brandon Morgan tells us new properties still need to compete, something he and other expert panelists will be discussing at our Seattle Construction & Development Summit on Feb. 27. But he tells us some of the questions you should be asking.
There will be opportunity for development in the urban core and for TOD, since that’s where a lot of local job growth has been concentrated, Brandon says. But considering the 36,000 units slated to come online the next few years, the key to competing will be in market segmentation and product differentiation. (A fancy way of saying don't spill mustard on your tie if the guy next to you has clean neckwear.) What has a property done to stand out? Are the floor plans as attractive and livable as possible? In what price points and unit types and sizes is the market not meeting demand? To hear some answers, sign up today!
CONSTRUCTION & DEVELOPMENT
Seattle-based Mack Urban entered the Portland market with the purchase of 1.67 acres of waterfront property in the South Waterfront District along the River Parkway, a site is often referred to as Block 37. Mack Urban partnered with Connell Real Estate and Development Co to acquire the parcel for $7M. Mack Urban Pacific Northwest managing director Jim Atkins (snapped at a Bisnow event last year) tells us they like the site's proximity to jobs, transportation options, access to recreation, and a sense of “there.”
Mack Urban's plan is to build a six-story mid-rise with up to 281 apartments and 250 parking stalls. "We like the Portland market a lot," Mack Urban CIO Matthew Burton tells us. "We'd love to do three, four, five projects here,” he says. "We know it's not going to happen in a year, but Portland is a happening city with distinct neighborhoods and a vibrant downtown—that’s placemaking at its best."
Airways Brewing Co plans to expand its Beer & Bistro in downtown Kent from 35 to 150 seats. The additional space will include a family-friendly seating area, while the current space will be remodeled and remain 21+. This second location for Airways Brewing opened in 2011 and earned the Best Economic Engine award from the Kent Downtown Partnership in 2013. Competition is tough in the brewpub business, but Airways founder Alex Dittmar tells us that “our sales crew gets to know our retailers personally, and that helps us stay in front of the big brands.”
Nitze-Stagen & Co and Daniels Real Estate formed a venture capital firm that will focus on investment opportunities in sustainable products and services used in the building industry. Peter Nitze will head the new firm, which will invest in early-stage businesses that specialize in such areas as advanced building materials, energy-efficient lighting, green roofs, or wastewater tech, and is looking to assemble a portfolio of three to four deals over the next 12 to 18 months.
Jones Lang LaSalle Income Property Trust acquired South Seattle Distribution Center, a three-building industrial portfolio totaling about 323k SF for $38M. The property is fully leased to three tenants, including the City of Seattle.
Bentall Kennedy of Vancouver sold the 173k SF Highlands Corporate Center in Bothell to locally based Clise Properties. Completed in 1998, the 10-acre property consists of 21909 30th Dr SE, 22011 30th Dr SE, and 22025 30th Dr SE, and has two tenants, Seattle Genetics and FujiFilm Sonosite. JLL managing directors Lori Hill and Stuart Williams repped Bentall Kennedy.
Three buildings totaling 80k SF along the water near Fremont—2, 4 and 6 Nickerson—traded hands for more than $13M. The buyer was 246 Nickerson LLC, associated with Stephen C. Grey & Associates, and the seller was Columbia West Properties. Cushman & Wakefield’s Steve Brunette and Gary Danklefsen brokered the deal.
Cornish College of the Arts inked a 20-year lease for the Playhouse at Seattle Center, which will host many of Cornish's educational programs in both the performing and visual arts, while also making the facility available to arts and cultural organizations. Cornish College of the Arts has managed the facility for the past year under an interim lease agreement. A subcommittee of the Seattle Center Advisory Commission recommended Cornish for this management role in 2012, and Seattle City Council approved the long-term lease in December 2013.
Suzi Morris joined Lowe Enterprises Real Estate Group as SVP to manage the firm’s Pacific Northwest activities. Among other things, she will lead the development of the 169-unit 1321 Seneca condo project on First Hill, Lowe’s JV with Swedish mutual pension company Alecta that’s due to break ground in mid-2014.
Indiana-based Centennial Mortgage named Renee Greenman as managing director in its Seattle office. Renee will manage the underwriting and processing of loans for multifamily, seniors housing, and healthcare facilities under various programs insured by HUD and the USDA.