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Seattle Housing to market major office development

Proceeds from sale to support low-income housing

SEATTLE — August 14, 2014 — Seattle Housing Authority announced today that it is marketing properties at the northern edge of Yesler Terrace. The properties, bordering Alder Avenue and Broadway, include about 4.41 acres that allow for development of up to 900,000 square feet of office and 100,000 square feet of retail including two towers with a height limit of 300 feet.

The agency has retained commercial real estate broker Kidder Mathews to find potential buyers, which could include medical, academic or tech companies wishing to develop a campus adjacent to Harborview Medical Center and the downtown core.

“We believe this property affords incredible potential for a variety of owners,” said Andrew J. Lofton, executive director of Seattle Housing Authority. “When built out, this campus will contribute to the fabric of a revitalized community that will include a wide spectrum of residents and incomes. We’re ready to welcome new businesses to the neighborhood.”

The properties are being offered without an asking price. A video overview and additional information can be found at SeattleOfficeDevelopment.com

Stan Snow, Senior Vice President of Kidder Mathews, said development properties of this size and scope at this prime location are rare, and he expects to be generating interest from the Bay Area and across the country.

“The proceeds of this sale will help fund the renewal of this community into a mixed-income neighborhood, and that’s why we’re excited to be bringing these properties to market,” said Snow. “There are many advantages to these parcels that will generate a lot of national interest.”

Highlights of the Yesler Terrace office campus development include:

  • Approved zoning. Environmental Review in accord with the State Environmental Policy Act (SEPA) has already been performed for office, medical services, and housing.
  • No further environmental review is required, although the City of Seattle may require a wind study and/or glare analysis with the high-rise proposal.
  • Exceptional views of Elliott Bay, Lake Washington and Mount Rainier.
  • The First Hill Streetcar, with an expected daily ridership of 3,000-3,500, will serve the campus.
  • Commercial development has the support of the Seattle Housing Authority, the Seattle City Council, and the federal Department of Housing and Urban Development (HUD).

The Housing Authority requires that all buildings on the site must meet LEED Gold standard. The agency also set aspirational goals for hiring women and minority-owned businesses in construction.

The site currently includes about 130 residential units in 13 low-rise apartment buildings. The agency will work with residents to temporarily relocate while new affordable housing is being built at Yesler. The Housing Authority has partnered with residents and other stakeholders over the past several years to develop a relocation plan that includes the right for residents to return to Yesler Terrace as new housing is built.

The first-phase of the Yesler Terrace redevelopment began last year. The project has been awarded significant grants through HUD’s Choice Neighborhoods Initiative. Additional funding comes from the Housing Authority, the City of Seattle and several private foundations.

The redeveloped neighborhood will feature new parks, gardening opportunities, and pedestrian-friendly streets, which will more easily connect Yesler Terrace residents to opportunities in surrounding neighborhoods. The Housing Authority has committed to replacing all of the existing 561 units of low-income housing within the Yesler Terrace neighborhood while adding additional affordable housing serving multiple income levels. There will also be market rate housing that is part of the overall redevelopment.

Contacts

  • Stephanie Van Dyke, Seattle Housing Authority, (206) 615-3525, Stephanie.vandyke@seattlehousing.org
  • Stan Snow, Kidder Mathews, (206)296-9643, ssnow@kiddermathews.com
  • Tim Foster, Kidder Mathews, (206) 296-9618, tfoster@kiddermathews.com
  • Jason Rosauer, Kidder Mathews, (206) 296-9608, jrosauer@kiddermathews.com
  • Rob Anderson, Kidder Mathews, (206) 296-9644, roba@kiddermathews.com