Jul 01, 2021

Columbia Pacific secures $27M for LA hotel

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Columbia Pacific Advisors announced the recent provision of a $27 million bridge loan to complete the construction of a 64-room Hyatt Hotel Nue in Los Angeles. The borrower was the Kumar family's S3D Partners LLC. The lender was Campaign Capital, whose Jaz Pirvani worked with Columbia Pacific's Eric Jordan on the deal. The funding was arranged via Columbia Pacific's bridge lending platform. Jordan said in a statement, “Luxury boutique hotels that focus primarily on leisure-driven markets have generally fared better and are expected to recover sooner than properties that are more reliant on convention or group revenue. With cities returning to normal and travelers planning for life back on the road, the Hyatt Hotel Nue should benefit from these trends due to its focus on tourists and locals and its well-timed opening targeted for the end of the year.” The seven-story development is right between Hollywood Boulevard and Sunset Boulevard, in the heart of Hollywood. The architect is nKlosures.

Pilot merges into Portland firm

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Local multifamily specialist Pilot Ventures has folded most of its operations into Capital Pacific Northwest, of Portland, which is a general commercial broker. The merged entity will now be known as CPX. The latter's Tiffany Wright said in a statement, “What attracted us to Pilot Ventures was its culture, which is very compatible with ours. In an industry that's highly transactional by nature, we differ in that we prioritize people and relationships over sales, and Pilot's team enhances our existing culture.” Pilot has been known as a multifamily brokerage and advisor. Its Sean Tufts said, “Now more than ever, owners have diversified into multiple asset classes, whether through acquisitions or repositioning of their own portfolios.” He, Jason Kono and Casey Zejdlik will remain in Seattle. They'll continue to operate the separate Pilot Ventures property management and syndication divisions.

NAIOP Night of the Stars nominations open

Live, in-person events are back, and NAIOP's annual Night of the Stars gala will be held on Nov. 5 at the Hyatt Regency Bellevue. Nominations for your favorite new buildings, deals, developers, etc. are due by July 19. Owing to the pandemic, the past year will be defined as projects completed between July 1, 2020, and Aug. 1, 2021. Finalists will be announced at the Sept. 22 breakfast (yes, live and in-person), with that location still TBD. View all the categories and submit your nominations at naiopwa.org.

Jun 24, 2021

NorthMarq secures $80M for Roosevelt TOD

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The local office of NorthMarq recently announced that its Stuart Oswald and Ron Peterson had secured an $80 million loan for an unnamed apartment project in Roosevelt, with about 289 units in three related buildings. That would be Iron Flats, at 828 N.E. 66th St., which was developed by Emerald Bay Equity, designed by Skidmore Janette and built by the developer. What it calls the north and west buildings, closest to the freeway (and on the corner of Eighth Avenue Northeast), opened first. NorthMarq says they're stabilized. The east building opened more recently, and is now filling with tenants. Oswald said in a statement, “The development was originally financed with two construction loans that were maturing later this year. We encouraged the owners to let us explore take out financing well before stabilization and we were able to offer several attractive, non-recourse, cash-out financing solutions with flexible prepayment structures.” First Financial Northwest Bank was the initial lender. NorthMarq says the new loan carries a three-year term on an interest-only schedule. Public records indicate that Varde Partners of Minneapolis provided the loan, via an LLC, in a deal signed in May.

SRM Development

Hansen

Based in Spokane, SRM Development is already a formidable presence in our market. It's currently building another office building for Google in Kirkland, and has a half-dozen-plus apartment projects planned in Bellevue and Seattle. (It also has a satellite office in Kirkland.) Now the private developer has announced a new affordable housing division, to be led by Conor Hansen, who makes the move from Mt. Baker Housing. SRM's Jim Rivard said in a statement, “SRM has a great track record in multifamily, senior housing and commercial development and construction. We are excited to expand our efforts to develop affordable housing. Conor's experience, entrepreneurial mindset, and tenacity make him a great fit to lead SRM's efforts in this area.” SRM says it's focus on Low Income Housing Tax Credit bond financing, with future rents to be affordable to households earning 50% to 60% of Area Median Income. It'll also target the so-called “missing middle,” meaning affordable rents for those earning 60% to 120% of AMI. Hansen didn't specify any specific first project, other than to say, “We will be focused on transit-oriented development sites in markets that haven't had as much new affordable housing created over the last decade.”

CenterCal Properties

Chavez

CenterCal Properties is nearly done with the first two phases of the Village at Totem Lake, in Kirkland. To manage that property, and other local holdings, the company recently appointed Ray Chavez as general manager. He makes the move from JLL's Everett office. He said in a statement, “CenterCal builds and operates beautiful centers including, The Village at Totem Lake, which is quickly becoming the Eastside's favorite place to be as we welcome restaurants like Silverlake Ramen and retailers like Barnes & Noble. Also coming soon to the Village are the eateries Stack571 Burger & Whiskey Bar, Bok a Bok Fried Chicken, Don't Yell at Me and ShabuGen Korean BBQ. Chavez will be based at the Village while also overseeing The Trails at Silverdale and The Terminal at Ballard.

Avatar launches new REIT

Avatar Financial Group announced the recent creation of a new commercial mortgage fund with a REIT structure. The minimum investment, via private placement offerings, is $100,000. Firm co-founder and president T.R. Hazelrigg IV said in a statement, “In the past, investors have participated in Avatar originated loans on a loan-by-loan basis.” In the new vehicle, an investor will become an equity owner in the entire fund, rather than only in a particular loan. Hazelrigg will manage the new fund, along with Jerry Zevenbergen. Verivest LLC will provide back-end and advisory support.

All about Koda

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With the pandemic waning, if not quite over, and state restrictions on public gatherings soon to be eased, NAIOP will again be conducing in-person events. First out of the gate is a tour of the new Koda condominium building in the International District. The 17-story, 201-unit Koda, by Da Li Development, is now into the final finish work by PCL Construction. (KMD Architects designed the project.) The event takes place at 3 p.m. Thursday, July 22. A rooftop reception will follow the small-group tours. Details and registration: naiopwa.org.

30 Central Area units to break ground soon

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Architect Build LLC announced that its King Street Flats project has successfully passed through design review; the project now has its construction and master use permits. There will be 30 units in two four-story buildings at 1629 S. Jackson Place and 1626 S. King St. Corstone will build the project for an ownership group related to AJP Engineering, the structural engineer. The team also includes Karen Kiest Landscape Architects; Red Barn Engineering, civil; Touma Engineers, surveyor; and Geotech Consultants. Construction will start this summer, and should take about 18 months.

New tenant for Gayteway

Broderick Group announced that it signed new tenant C&C Packaging Services for Building C at Gayteway Business Park. The company will take 31,621 square feet, with a long-term lease. Broderick Al Hodge and Steve Henderson brokered the deal for owner/developer GS Venture Partners. That firm is led by Chris Gayte, who said in a statement, “It is exciting to see C&C Packaging Services relocate to Gayteway. We welcome them along with all of the other companies that have recently made the move or targeted Arlington for expansion and relocation.” GS is developing the 54-acre former Weyerhaeuser mill property in phases. If entirely realized, it could have 1 million square feet in nine buildings. Building G is next in line.

Arrived Homes gets $37M from Bezos and other billionaires

New real estate platform Arrived Homes recently announced $37 million in seed funding and debt financing. Core Innovation Capital arranged the first round of financing from sources including Bezos Expeditions (the investment company of Jeff Bezos), Time Ventures (the investment fund of Marc Benioff, of Salesforce) and Spencer Rascoff (the former CEO of Zillow). Arrived was founded here by Ryan Frazier, Kenny Cason and Alejandro Chouza. The startup that allows investors to buy SEC qualified shares in rental homes. The company says it has to date bought over 30 properties throughout Arkansas, North Carolina, and South Carolina. CEO Frazier said in a statement, “With Arrived, we're breaking down the barriers to investing in rental homes, by taking a process that typically takes months and making it accessible in less than four minutes, starting from just $100. We're really passionate about the opportunity to help millions of people better access this historically great asset class.”