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German Investor Acquires The Station at Othello Park for $75M; Portland-Area Apartment Complex Trades Hands in HFF-Arranged Deal

28 Jul 2014, 3:42 am

By Alex Girda, Associate Editor

The Pacific Northwest’s residential market continues to see a large amount of interest from investors. Last week, a transit-oriented community in South Seattle and a garden-style apartment complex in Clackamas, near Portland, traded hands in deals worth a combined $90 million.

The Station at Othello Park

Universal Investment, an entity based in Frankfurt, Germany, paid $74.8 million for The Station at Othello Park. The seller was a partnership of USAA Real Estate and local developer Steven Rauf. The 351-unit property is located in South Seattle, at 4219 S. Othello St. near Sound Transit’s Othello Link light-rail station. The Station is a transit-oriented residential community that offers a complete resident amenity package, including retail, a common courtyard with a garden, a community room, a fitness facility, an art & grand staircase, as well as a skydeck with 360-degree views of nearby Mt. Rainier.

Meanwhile, in Clackamas, Oregon, Wood River Properties sold Sunnyside Place, a garden-style community, to buyer Hamilton Zanze for $14.1 million. The deal was arranged by an HFF team including director Ira Virden and senior real estate analyst Kerry Hughes. Financing for the acquisition was also provided by a team of HFF representatives led by managing director Tom Wilson and director Charles Halladay. The debt placement team arranged $10.58 million via a floating- to fixed-rate acquisition loan through Freddie Mac’s CME Program. HFF will service the securitized loan through its Freddie Mac Program Plus Seller/Servicer program.

Located at 13300 SE 122nd Ave. on a 5.97-acre site, Sunnyside Place offers one-, two- and three-bedroom units, with an average size of 1,025 square feet. At the time of the transaction, the 108-unit property had an occupancy rate of 95.4 percent. The resident amenity package at the property includes a swimming pool, hot tub, fitness center, playground and common clubhouse.

Image courtesy of thestationatothellopark.com

$400M Week for Pacific Northwest: Madison Marquette Acquires Pacific Place Mall, Pebblebrook Buys The Nines Hotel

19 Jul 2014, 2:56 am

By Alex Girda, Associate Editor

The Pacific Northwest’s commercial market had one of its best weeks by the numbers, as two properties in Portland and Seattle traded hands in deals worth a combined total of nearly $400 million. Madison Marquette acquired the Pacific Place Mall in Seattle, while Pebblebrook Hotel Trust picked up The Nines Hotel in Portland.

image courtesy of https://www.facebook.com/PacificPlaceSeattle

Madison Marquette paid developer Pine Street Development $271 million for the Pacific Place retail center. Totaling around 350,000 square feet of space, the five-level regional shopping center has been active since it was constructed in 1998. The property had been on the market since January. According to Bloomberg Businessweek, $14 million of the sale proceeds are set to go to the United Way of King County, due to the involvement of Matt Griffin, a partner in Pine Street Development and chairman of the United Way campaign.

At the time of the transaction, the shopping center had an occupancy rate of 90 percent, with anchor tenants Barnes & Noble and AMC Theatres and upscale retailers such as Barneys New York, Tiffany & Co. and Kate Spade rounding out the tenant roster.

The Nines Hotel, image courtesy of www.thenines.com

Pebblebrook Hotel Trust completed yet another acquisition in the Pacific Northwest with its purchase of The Nines Hotel in Portland. The buyer paid $127 million for a fee simple condominium interest in the facility, which occupies floors six through 15 at the 1909-built historic property located at 525 SW Morrison St. In 2008, the property underwent a comprehensive $140 million adaptive reuse renovation and was reopened as The Nines Hotel.

The new owner is set to invest $6 million to $8 million worth of capital in the updating of the hotel’s guestrooms and common areas, a process reportedly set to begin during the fourth quarter of 2015. The LEED Silver-certified facility offers 331 rooms, ranging in size between 365 and 628 square feet. Despite the change in ownership, the hotel will continue to be operated by Sage Hospitality and Sage Restaurant Group, maintaining its association with Starwood’s Luxury Collection brand.

Portland’s Block 300 Receives LEED Gold Certification as Leasing Continues at Newly Renovated Asset

12 Jul 2014, 4:59 am

By Alex Girda, Associate Editor

Block 300 in Portland, one of the most high-profile office properties in the Pacific Northwest city, recently completed a major milestone. The property was awarded a LEED Gold certification for Existing Buildings: Operations & Maintenance by the U.S. Green Building Council. The certification is a result of the recent modifications brought to the asset, a recent renovation process having been carried out at the facility by the ownership joint venture of JPMorgan, Starwood Capital Group and Kaufman Jacobs.

Block 300 is a 360,000-square-foot office asset located at 308 S.W. Second Ave. in the city’s Central Business District. Once the anchor tenant, the General Services Administration left last year, opening up about half of the total available space. The owners kicked off a multimillion-dollar capital improvement program, and tasked JLL with leasing the facility. The newest tenants include tech companies Puppet Labs and Cvent.

The asset received a major lobby remodel and extensive upgrades to the fitness facility, elevator cabs, common areas, dining rooms, bicycle parking facility and locker rooms exclusively for tenant use, retail amenities, as well as other improvements. The design firm was locally based industry giant ZGF. The process utilized eco-friendly materials and finishes, and features unique elements such as the first Philips Lumiblade OLED light installation in the country and a living green wall.  

The building offers 360-degree views of Mt. Hood, Mt. St. Helens and the Willamette River, as it is located just one block from the river. The city’s MAX public transportation system and easy access to nearby freeways also offer advantages. The package includes 24-hour security, including specialized personnel and surveillance cameras and card key access after hours.

Image courtesy of block300.com.

Vulcan, Plus Investment Target South Lake Union, Bellevue with Nearly 2,000 New Residential Units

7 Jul 2014, 3:47 am

By Alex Girda, Associate Editor

Nearly 2,000 residential units might be added to the Puget Sound’s already well-populated development pipeline. Developers Vulcan Real Estate and Plus Investment USA have lined up large residential projects in South Lake Union and Bellevue, respectively, according to recent reports. The fast pace of job creation, a growing tech market appeal and a constant flow of new residential development projects have turned such parts of the greater Seattle area into white-hot markets.

With 2,200 units coming online just during the first quarter of 2014, according to data provided by Marcus & Millichap Real Estate Investment Services, the city is set to maintain an elevated pace of development. Vulcan Real Estate has revisited its plans of developing multifamily buildings near the southern shore of Lake Union, after one design scheme proved too controversial and was dropped before the end of last year. The company has now proposed three smaller towers of 160 feet, as opposed to the previous 240-foot-tall buildings it had planned; when completed, they will offer a total of 853 residential units and 35,000 square feet of retail space, public records show. The projects are currently in the pre-development stage, with no planned construction schedules for the near future.

Meanwhile, Plus Investments USA has two 43-story residential towers planned for the corner of Northeast Eighth Street and 108th Avenue Northeast in downtown Bellevue. The company is planning on building its newly announced project beginning in 2016 on the site of First Congregational Church, which it has owned since earlier this year, The Puget Sound Business Journal reported. The two buildings would total nearly 1,000 residential units and be located above a common podium that would offer a large retail component, with a hospitality component also in the mix, according to The Seattle Daily Journal of Commerce. The developer is the local real estate subsidiary of Plus Investments, a Hong Kong-based entity.

Chart courtesy of Marcus & Millichap Real Estate Investment Services.

TruAmerica Multifamily Purchases Third M

29 Jun 2014, 3:29 am

By Alex Girda, Associate Editor

TruAmerica Multifamily recently closed on the purchase of a multifamily complex in the Seattle suburb of Renton in a deal worth $28.7 million. The L.A.-based real estate investment firm further expanded its metro Seattle portfolio with the purchase of Montclair Heights, which followed the completion of two other residential acquisitions in the market over the past six months.

TruAmerica’s other buys included the December 2013 purchase of the Arcadia Luxury Townhomes in Federal Way and the Westhaven Apartments in Seattle, acquired this past March. The buyer acquired the property in partnership with LEM Capital L.P. and financed it with a five-year rehab bridge loan from OneWest Bank.

Montclair Heights is a 174-unit residential asset totaling more than 200,000 rentable square feet located. The complex offers two- and three-bedroom units, with an average unit size of around 1,153 square feet. Montclair Heights occupies a 16-acre plot of land that offers park-like landscaping and a resident amenity package that includes a pool, a common clubhouse, a fitness facility and a spa. The community is located in Seattle’s metropolitan area, minutes away from job centers such as the Central Business District Bellevue and the Boeing Renton Plant. Transportation is also easily accessible, with the I-405 and Highway 169 nearby, as well as the Sea-Tac International Airport.

The new owner has already planned a number of improvements for the property that aim to add contemporary finishes to the interiors and exteriors and modernized amenities in the common areas. Noah Hochman, director of acquisitions at TruAmerica Multifamily, voiced the company’s confidence in the metro Seattle residential market, noting that the buyer is “pleased to complete our third property acquisition in the region, following our purchases of Arcadia Luxury Townhomes and Westhaven Apartments.”

Image courtesy of apartmentguide.com 

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