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Holland Partner Group Acquires SLU Development Site Near Amazon’s Denny Triangle Campus

22 Mar 2015, 5:18 am

By Alex Girda, Associate Editor

A new development project is set to hit an already bustling area of Seattle. Holland Partner Group, a development company that mostly operates in the Pacific Northwest, recently acquired a high-profile development site in South Lake Union for a reported $20.1 million. The new owner is ready to propose a major residential development in the Denny Triangle, an area energized in recent years by Amazon’s ambitious high-rise office campus project.

According to the Puget Sound Business Journal, Holland Partner Group acquired the development site from Brooke Real Estate Venture LLC. The company plans to build a 460-unit residential property that would also feature a commercial component of around 17,000 square feet of retail.

Union SLU, one of HPG’s South Lake Union developments

The site totals about two-thirds of an acre and is located at 970 Denny Way, placing the future residential high-rise between Amazon.com’s current headquarters and the Internet giant’s massive campus development. PSBJ writes that Holland has scheduled a construction start in the spring of next year.

Holland Partner Group’s current Seattle-area portfolio includes 815 Pine near the Washington State Convention Center; Coppins Well in First Hill; Hue, True North and Union SLU in South Lake Union; as well as Rivet in the Cascade neighborhood.

Image courtesy of unionslu.com.

Seattle’s Tallest Tower Set to Hit Market Later This Year

17 Mar 2015, 4:46 am

By Alex Girda, Associate Editor

With the price of Seattle real estate continuing to grow, some entities are considering offloading even their most prized assets in order to ensure large cash-ins. That seems to be Beacon Capital Partners’ strategy for one of its Seattle properties: Columbia Center. The Boston-based private equity real estate company has reportedly employed the services of Eastdil Secured for the upcoming sale of the city’s tallest skyscraper. According to Finance & Commerce, the formal marketing process should soon be underway.

Columbia Center is not only Seattle’s tallest building, it’s the second-tallest skyscraper west of Chicago. The 937-foot-tall structure was constructed back in 1985 and totals roughly 1.5 million square feet of space. Back in 2007, the property was acquired from Blackstone for $621 million. Suffering as a result of the financial crisis, the asset was only two-thirds occupied and was put through an extensive renovation process that upgraded its conference center, signage, gym and roof. The process also included a reimagining of The Columbia Tower Club.

With capital pouring into the Seattle area market and absorption continuing to go well, there is definitely a market for the tower. In fact, according to previous sale data for comparable assets, the last price per square foot recorded for a skyscraper in Seattle stood at $499 when 1201 Third Ave. traded hands in 2012. That means Columbia Center would sell for an estimated $750 million, and that’s with rates from three years ago.

The value of Seattle office space has since climbed, and it now bears one of the lowest vacancy rates in the country. The average price per square foot for Seattle office assets in 2012 stood at roughly $250, while 2014 ended with an average of around $290, a Marcus & Millichap report shows.

Image courtesy of https://columbiacenterseattle.com

Seattle, Portland Experience Major Home Price Growth

9 Mar 2015, 4:41 am

By Alex Girda, Associate Editor

The Pacific Northwest has seen its real estate market soar over the past few years, with good employment numbers and development driving the two major cities anchoring the area: Seattle and Portland. Both cities’ housing markets are now experiencing growth, with home prices soaring over the past few quarters.

According to numbers from real estate brokerage firm Redfin, Seattle is poised to have its best year for home prices in eight years. According to The Puget Sound Business Journal, numbers show that the market is seeing the largest demand from home buyers since mid-2013. That, combined with a considerably larger housing stock in the Seattle area, should provide a very dynamic housing market in 2015. Median home prices in the area are currently a reported 9.1 percent higher than at the same point in 2014, with houses selling at an average price of around $360,000, far outpacing the national year-over-year growth.

The city of Portland’s housing market is also doing far better. Houses in the Portland area were trading at prices higher by 7.6 percent in January 2015 than they did one year ago. The Portland Business Journal also noted a month-over-month price increase of 1 percent in January compared to December, according to CoreLogic data. The data provider predicted continued growth in 2015, with Portland, Vancouver and Hillsboro exhibiting further improvement.

Apartment Complex Trades Hands Near Nike World HQ, Intel Campus

2 Mar 2015, 9:34 pm

By Alex Girda, Associate Editor

A joint venture between PCCP LLC and Security Properties recently completed the acquisition of a Beaverton, Ore., multifamily asset. The $39 million purchase was made through Security’s Security Properties Multifamily Fund II as part of an eight-asset shopping spree.

The Element 170 Apartments is a new, Class A residential community totaling 243 units; leasing began in May 2014, with operations stabilized this January. The Blue MAX Light Rail Station is nearby, offering easy access to downtown Portland, as well as the airport. Nike’s world headquarters and Intel’s Beaverton campus are the two major employers in the area.

Element 170 Apartments rests on a 9.3-acre site and consists of 10 four-story buildings. The property also includes a leasing office/clubhouse and offers residents an amenity package including a pool, fitness center, conference room and tot lot. Upgraded units feature custom cabinetry, in-unit washers and dryers, and nine-foot ceilings, with vaulted ceilings on all top-floor units. Mark Hoyt, senior director of investments at Security Properties, pointed out the community’s strengths and noted that the new owner expects “these factors to contribute to better-than-market revenue growth during our hold period.” Hoyt also noted that Security Properties was able to “structure the purchase contract to lock in the price in the fourth quarter of 2013.”

Image courtesy of element170beaverton.com

Hines Acquires Large Office Asset in High-Performing Bellevue

24 Feb 2015, 5:29 pm

By Alex Girda, Associate Editor

Mega-developer Hines has acquired Civica Office Commons in Bellevue in a deal worth approximately $205 million. The Bellevue office market has consistently over-performed in the past few years, with top assets currently sought after at cap rates lower than 5 percent. With completions also set to go up in 2015 and absorption rates climbing as well, the area’s office market is ripe for investment.

The latest addition to Hines’ Pacific Northwest office portfolio totals 323, 562 square feet of space. Civica Office Commons consists of two office buildings standing six and eight stories, respectively, and connected by a common atrium. The property was developed back in 2001 and offers tenants a considerable amenity package, including a concierge, Seastar restaurant, Starbucks, a Wells Fargo bank branch, hotel-style valet parking, a fitness center with lockers and towel service, as well as state-of-the-art conference facilities.

A testament to the market’s current highs, only around 10 percent of the property is currently vacant. The asset features a number of high-profile tenants on its roster, among them Cornerstone Advisors, MetLife, Microsoft, Morgan Stanley, Waggener Edstrom as well as Wells Fargo Bank.

According to Hines Senior Managing Director Ty Bennion, Bellevue continues to be the region’s strongest submarket. CBRE research shows that at the end of fourth quarter 2014, the Bellevue CBD was the best-performing office market in the greater Seattle area, based on total gross asking lease rates for Class A space. Bellevue’s CBD also ranks high in occupancy and trails only the booming South Lake Union area for office space to be built in the coming years.


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