— By Jacob Pavlik, research manager, Colliers — A 10-mile drive east of Seattle, Bellevue is the top destination for urban retail activity in the Puget Sound. High incomes, healthy daytime employment and the most active office leasing market in the Pacific Northwest means not much more is needed to make a retail space thrive. That is, except reasonable fit-out costs for new space. The Bellevue CBD has seen significant new construction for office buildings (with lots of ground-floor retail opportunities), delivering 3.3 million square feet over the past year alone. Unfortunately, sky-high construction pricing and office market financing challenges have made it difficult to get retail leases done in new buildings. Second-generation spaces in the submarket are the reasonable but diminishing alternative. Second-generation spaces are filling up faster than they become available. The demand is partially from tenants whose buildings were torn down for redevelopment. Given the cost of fitting out a space in a brand-new building elsewhere in the Bellevue CBD, second-generation space is the most lucrative alternative. First-generation space, which delivers as a cold shell without HVAC, plumbing or dry wall, can cost upward of $400 per square foot to build out. Landlords tend to offer $100 …
SILVERDALE, WASH. — Live Oak Bank has provided a $47.5 million bridge loan for the refinancing of an undisclosed seniors housing community located in Silverdale, roughly 25 miles northwest (approximately 70 miles by vehicle) of Seattle. Built in 2022, the property comprises 172 independent living, assisted living and memory care units. The borrower is a Florida-based owner of seniors housing communities. The financing features a three-year initial term and 24 months of interest-only payments. Loan proceeds were used to retire the existing debt, with $4 million in potential future earnout proceeds.
LACEY, WASH. — TMR Investments has purchased The Village at Union Mills, an apartment property located at 8146 Sweetbrier Lane SE in Lacey. Terms of the transaction were not released. The Village at Union Mills offers 182 apartments. TMR has budgeted $4.1 million to execute a value-add repositioning strategy for the property. The planned investments include enhancements to the fitness center, clubhouse and outdoor amenity spaces, the addition of electric vehicle charging stations and rebranding. Planned interior unit renovations include the addition of stainless steel appliances, stone countertops and contemporary lighting and hardware.
SEATTLE — Northmarq has negotiated the sale of Aldercrest Apartments, a multifamily property located at 303 10th Ave. in Seattle. An entity doing business as 303 10th Ave LLC acquired the asset for $13.1 million. Situated within the city’s First Hill district, Aldercrest Apartments offers 47 studio, one- and two-bedroom floorplans with nine-foot ceilings, bay windows and in-unit washers and dryers. Community amenities include landscaped grounds, controlled access, gated/assigned underground parking and 24-hour emergency maintenance. Tyler Smith, Steve Fischer, Joe Kinkopf, Brendan Greenheck, Taylor Wymna and Matt Johnson of Northmarq’s Seattle Multifamily Investment Sales team represented the undisclosed seller in the transaction.
AUBURN, WASH. — Schnitzer Properties has purchased White River Corporate Park, a 230,575-square-foot, four-building industrial park in Auburn. With this acquisition, Schnitzer Properties owns and manages more than 2.5 million square feet in the Puget Sound area, with 594 tenants. White River Corporate Park is fully leased and houses 12 tenants, including manufacturers, distributors and service providers. Brett Hartzell and Paige Morgan of CBRE handled the transaction. The financial terms of the deal were not released.
TACOMA, WASH. — Marcus & Millichap has negotiated the sale of 12th Street Storage, a self-storage facility in Tacoma. An undisclosed limited liability company sold the asset to a fund manager for $19 million. Located at 1018 E. Highland Ave., 12th Street Storage offers 91,546 square feet of self-storage space. The facility, which was developed in 2020 and 2021 by a local investment group, was acquired by an international real estate firm based in London and Los Angeles. Christopher Secreto of Marcus & Millichap’s Seattle office represented the seller and secured the buyer in the deal.
BELLEVUE, WASH. — Seattle-based Security Properties has completed the sale of Sylva on Main, a midrise apartment community in Bellevue, to Rise Properties Trust for $30 million, or $405,405 per unit. Built in 2011, Sylva on Main offers 74 apartments and two retail suites. The property is located at 10701 Main St. Ben Johnson, David Sorensen, Kenny Dudunakis, George Pallis and Peter Dudunakis of Berkadia’s Seattle office represented the seller in the deal.
VANCOUVER, WASH. — Lincoln Property Co. (LPC) has opened Port of Vancouver USA Terminal 1, an office and retail development in southern Washington. The two-building complex is located in the city’s waterfront district and features 366,000 square feet of Class A office space, 12,000 square feet of ground-floor retail space and commercial amenities. The office component of the project will house the new global headquarters for ZoomInfo, an artificial intelligence platform provider based in Vancouver. Four years ago, the Port of Vancouver USA selected LPC to develop the site on port land along the Columbia River in one of two master-planned communities that are transforming the waterfront into a live-work-play neighborhood. The waterfront district is situated in the city’s urban core with convenient access to highways, public transit and Portland, Ore. The Terminal 1 development features 10- and nine-story buildings, a rooftop deck and 10,000 square feet of landscaped green spaces and outdoor seating that will be open to the public. Parking will be available on nights and weekends. The development team is also targeting LEED Gold certification. The 10-acre site is already home to an AC Hotel by Marriott, green open spaces, walking trails and bike paths. A public …
ROSEBURG, ORE., AND WOODLAND, WASH. — Northmarq has brokered the sale of a three-property manufactured housing portfolio in Oregon and Washington for $14.3 million. Jeff Benson and Sam Neumark of Northmarq represented the undisclosed seller and buyer on both transactions. Vancouver, Canada-based Harmony Communities acquired Western Star Mobile Home Community, a property at 101 Lad Lane in Roseburg that features 117 pads and 46 storage units. The asset was developed in 1973. Hurst and Son LLC purchased the 96-space Woodland properties — Oaks Mobile at 38308 Lakeshore Drive and Woodlands Mobile Home Community (MHC) at 3910 NW Pacific Highway. Woodlands MHC offers a clubhouse, library and waterfront along the Lewis River.
REDMOND, WASH. — Washington Holdings has received $43.5 million in refinancing for The Carter on the Park, a six-story apartment property in downtown Redmond. Bruce Ganong and Seth Heikkila of JLL Capital Markets Debt Advisory arranged the loan through PGIM Real Estate on behalf of the borrower. Located at 7508 159th Place NE, The Carter on the Park offers 180 one- and two-bedroom apartments with keyless entry, high-end finishes, stainless steel appliances, fiber internet, high-quality LTV hardwood-like flooring and private patios. Community amenities include a fitness center, rooftop deck, tech bar, two-story bike storage facility, coworking spaces and an interior courtyard with fire pits, grilling stations and ping pong. The 216,220-square-foot property was built in 2016.