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HFF Secures $71M in Financing for Block 67 Project at Burnside Bridgehead

14 Sep 2014, 5:51 am

By Alex Girda, Associate Editor

An apartment tower development project in downtown Portland is underway, now that financing is in place for the development team of Guardian Real Estate Services and Key Development Corp. The approximately $71.75 million was provided by HFF LP.

HFF managing director Casey Davidson, director Mark Erland, associate director Kerry Hughes and senior real estate analyst Erica Christensen secured the senior construction loan and mezzanine financing.

The developer will use the proceeds to continue work on Block 67, a 21-story, 284-unit, Class A apartment property located at the corner of NE Third Avenue and Burnside Street, in the city’s Central Eastside district. Specs for the project include 16 levels of residential apartments, with the first five floors taken up by parking facilities and a commercial component totaling 24,700 square feet of space. Residential units will feature views of the Portland skyline, while the resident amenity package will include a 9,300-square-foot eco-roof and podium level with fire pits, barbecue area, pet exercise area, fitness facility and spa. The project is set for a 2016 grand opening.

Block 67 ended up in Key Development’s hands after the Portland Development Commission held a competition to determine the developer for the site back in 2012. The current team behind Block 67 also includes Andersen Construction Co. and Skylab Architecture. The competition was held to finally fill the Burnside Bridgehead block in Portland’s Central Eastside.  

Image courtesy of Skylab Architecture

Kennedy Wilson Acquires Turnwater M-F Asset for $21M

8 Sep 2014, 4:13 am

By Alex Girda, Associate Editor

Kennedy Wilson is continuing its aggressive expansion policy in the Pacific Northwest with yet another multifamily purchase. The company invested roughly $21 million in the acquisition of the South Seattle asset. The company is the new owner of the Tabula Rasa property in Turnwater, Thurston County, which it acquired from a financial institution that had been its lender.

The buyer invested $8 million worth of equity in the transaction, and also secured a seven-year, $13.5 million loan from Freddie Mac. Following this transaction, Kennedy Wilson’s portfolio totals 19,531 residential units, more than a quarter of which are located in the Pacific Northwest region. According to Shem Streeter, managing director at Kennedy Wilson, the company acquired the property due to the current lack of new developments of this kind in the region. Furthermore, “the upward-trending rent growth, coupled with an attractive location in close proximity to the key employment centers, makes Tabula Rasa an exciting investment opportunity.”

Tabula Rasa is a 118-unit apartment property that was developed back in 2008. The condominium-quality asset features townhomes and flats, making it a premier rental property. Resident amenities include a Northwest-style lodge clubhouse and private two-car garages. The property is located in the immediate proximity of the I-5, as well as a generous offering of dining, retail and employment options. Thurston County is one of the top business places in the entire country in regards to the cost of living, job growth, recreational and cultural opportunities, and educational attainment.

According to a recently issued press statement announcing the acquisition, the investment was made in an area that “continues to remain one of KW’s top investment targets, and we expect to continue to seek opportunities within this region,” noted president of Kennedy Wilson Multifamily Kurt Zech.

Bluetooth’s Home in Kirkland Acquired in $30M Deal

23 Aug 2014, 5:27 am

By Alex Girda, Associate Editor

The building that houses Bluetooth’s current headquarters was sold this week in a deal worth approximately $31.5 million. Buyer American Realty Advisors out of Glendale, Calif., paid the purchase fee to former owner Talon Private Capital for the Kirkland office building. Known as Waterfront Place, the property claimed a record-breaking per-square-foot price for the area, with the Puget Sound Business Journal reporting a rate of $604 per square foot.

Waterfront Place offers a total of 51,841 square feet of space over three stories plus two floors of below-grade parking. The asset was completed back in 2008, and approximately a third of the space is currently leased out to global wireless company Bluetooth. The building features brick veneer cladding with metal and wood accent panels on the exterior, while the interior offers tenants Class A finishes. The midsize office building also offers HVAC, two high-speed hydraulic elevators, a security card system at the entrances as well as the garage, and smoke and heat detectors. Offices have a 12-foot-six-inch ceiling height; a recent building improvement is the addition of a large private outdoor plaza and exterior deck on the third floor.  

Located on the shore of Lake Washington, the property charges a per-square-foot rate of approximately $40, which is considerably higher than the Kirkland average, which currently stands at around $35 per square foot. Seller Talon Private Capital recorded a profit of $10 million compared to four years ago, when the company acquired Waterfront Place for $21.5 million.

Image courtesy of  waterfrontplaceyb.com

Swift Real Estate Pays $8.5M for 811 SW Naito Parkway in HFF-Arranged Deal

18 Aug 2014, 4:01 am

By Alex Girda, Associate Editor

A Portland, Ore., office property was recently traded in a deal brokered by Holiday Fenoglio Fowler. ATC Partners LLC, a full-service real estate firm from San Francisco, worked with HFF to sell the property to Swift Real Estate Partners for $8.55 million.

Located at 811 SW Naito Parkway, on the edge of the city’s central business district, the asset offers a total of 49,946 square feet of office space that also includes an underground parking garage that can accommodate as many as 28 vehicles, as well as an adjacent parking lot with 17 stalls. Nearby transportation options include the MAX light rail line, as well as I-5 and I-84. The six-story, 1982-built office building went through a major renovation last year. The building features unobstructed views of nearby Mount Hood, the Willamette River and Tom McCall Waterfront Park.

Seller ATC Partners is a value-add real estate company that has been on the scene since 1992. Over the past seven years, it has added 811 assets to its portfolio. Although it is currently involved in a sale, the company has been through something of a shopping spree, having invested around $75 million over the last year and a half. The new owner of the assets, Swift Real Estate Partners, is an independent and vertically integrated real estate investment firm that focuses on buying and turning around office and industrial properties on the West Coast.

The HFF team in charge of the transaction consisted of director Nicholas Kucha and senior managing director Michael Leggett.

 Image courtesy of atcpartners.com

Kennedy Wilson Expands Pacific Northwest Portfolio with $127M in Acquisitions

9 Aug 2014, 4:47 am

By Alex Girda, Associate Editor

Kennedy Wilson recently expanded an already substantial multifamily portfolio in the Pacific Northwest, as the company acquired three properties in the greater Seattle area. The $127 million investment included equity and a financing component sourced from Freddie Mac.

The three properties are located in Olympia, Kent and University Place and total 1,212 residential units. The communities will bring Kennedy Wilson’s portfolio to a total of 19,547 units, with 5,016 of the units located in the Pacific Northwest region. The buyer invested $45 million in equity and assumed $85 million in financing, fixed at 4.25 percent.

Montair at Somerset Hill is a 396-unit residential community that includes one-, two- and three-bedroom apartments, with an average unit size of 933 square feet. Located in the Turnwater area of the city, the community offers views of nearby Puget Sound, Mount Rainier and the Capital Dome. The area includes a strong job market, good schools, high median home values, strong local retail and access to recreational amenities.

Rock Creek Landing in Kent totals 576 units, including studio units and one-, two- and three-bedroom residences, with an average size of 786 square feet. Located at the heart of the Kent Valley Employment Center and in the vicinity of the 20-acre retail lifestyle center that is Kent Station, the residential community benefits from an upward-trending local job market and easily accessible high-end retail.

Stone Pointe, in University Place, totals 240 units and offers a similar variety of layouts, with one-, two- and three-bedroom residences having an average size of 894 square feet. Located in the upscale University Place neighborhood of Pierce County, it is near a number of high-end schools, retail and dining options. The area features the site of the upcoming 2015 U.S. Open: the Chambers Bay Golf Course.

Image courtesy of montairatsomersethillliving.com


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