Offering Summary

Overview

Kidder Mathews is pleased to exclusively list a rare development site in Seattle’s University District for sale. Development sites of this size seldom become available in the market & investors are able to capitalize on the recent University District up-zoning allowing for higher density buildings on the Site.

Known for its hip, eclectic college-town feel, the University District is poised to take on dramatic growth within the next several years. The Site is located in the University District Northwest Urban Center Village, in the heart of the U-District, boasting a WalkScore of 94 out of 100. Additionally, the Site is only steps away from unparalleled transit options such as the future U-District Light Rail Station with service beginning in 2021, Metro buses, and the Burke Gilman bike / pedestrian commuter trail.

Transit-Oriented Development

The Site is located only three blocks from the future U-District Light Rail station, offering an ideal Transit-Oriented Development (T.O.D.). T.O.D. sites appeal to Seattleites who are moving more towards mass transit options. Additionally, multifamily T.O.D. sites can achieve rental premiums of at least 15% compared to similar non T.O.D. communities.

Prior to opening the University of Washington and Capitol Hill Light Rail stations, about 39,000 people used Light Rail each weekday. After opening in March 2016, the new stations have shifted the way people in the Seattle area commute. Sound Transit estimates ridership has jumped to about 70,300 weekday commuters, with the UW and Capitol Hill stations accounting for roughly one-fourth of daily average totals. In the past year, ridership for Light Rail has increased by five million passengers, the largest growth in the country.

Development Sites

Three parcels are located on Roosevelt Way NE and a fourth parcel is located across the alley on 11th Avenue NE. The Roosevelt and 11th Avenue parcels may be purchased separately or collectively. The total of four parcels make up the Site with ±24,240 square feet of developable land in the University District Northwest Urban Center Village.

The recent up-zone of this neighborhood allows for taller structures and increased density. The Site’s zoning is SM-U 75-240 and SM-U/R 75-240 (Seattle Mixed-Use U-District residential) with height limits of 75 feet for mid-rise structures up to 240 feet for high-rises. A maximum floor-area-ratio (F.A.R.) of 10.0 is allowed for mixed-use residential high-rises on the Site. Allowable uses on the Site include residential, office, retail, and hotel.

Executive Highlights

  • Transit-Oriented Development (T.O.D.) Site
  • Core location: heart of the U-District in Seattle
  • Located in the University District Northwest Urban Center Village
  • ±24,240 SF of developable land
  • Zoning: Seattle Mixed-Use U-District (SM-U and SM-U/R) 75-240
  • Recent up-zone allows for taller structures and increased density
  • Midrise structures allow up to 75’ and high-rises up to 240’ in height
  • Maximum floor-area-ratio (F.A.R.) up to 10.0 with mixed-use residential high-rise; 6.0 for midrise development
  • Development uses include residential, office, retail, and hotel
  • ±16,000 SF on three contiguous parcels that front Roosevelt Avenue
  • ±8,240 SF parcel that fronts 11th Avenue, across the alley
  • Existing uses on site produce $12,892 in monthly income
  • Hardware store on Roosevelt Avenue may be optioned for a short-term sale lease-back
  • Three blocks from future U-District Light Rail station opening 2021: service to Husky Stadium, Capitol Hill, downtown, and SeaTac Airport
  • Major employers nearby include University of Washington, Seattle Children’s Hospital, Adobe, Google, Tableau, Amazon, and Fred Hutch
  • Walking distance to restaurants, boutiques, grocery stores, coffee shops, bars, and music venues

Parcel 1

Address 4212 Roosevelt Way NE,
Seattle, WA 98105
Parcel No. 114200-0725
Site Area 8,000 SF (0.18 acres)
Zoning SM-U 75-240 (M1)

Parcel 2

Address 4212 Roosevelt Way NE,
Seattle, WA 98105
Parcel No. 114200-0710
Site Area 4,000 SF (0.09 acres)
Zoning SM-U 75-240 (M1)

Parcel 3

Address 1006 NE 42nd Street,
Seattle, WA 98105
Parcel No. 114200-0705
Site Area 4,000 SF (0.09 acres)
Zoning SM-U 75-240 (M1)

Parcel 4

Address 4211 11th Avenue NE,
Seattle, WA 98105
Parcel No. 114200-0690
Site Area 8,240 SF (0.19 acres)
Zoning SM-U/R 75-240 (M1)

Market Overview

Major Seattle Employers

  • 4 miles to Seattle CBD: over 300,000 jobs
  • Downtown Seattle adding an average of 25 new jobs per day
  • 4.1 million SF of office space under construction in Seattle CBD; 47% pre-leased
  • Amazon’s World Headquarters in Seattle currently expanding to nearly 14 million SF by 2020: capacity for 72,000 employees
  • Over 100 tech companies with engineering offices in Seattle
  • Facebook added 2,000 employees in 2016 at their new SLU location; Seattle footprint of nearly 1 million SF with plans for further expansion
  • Google expanding to 607,000 SF South Lake Union campus by 2019
  • Silicon Canal, Seattle’s tech hub, 5 minutes southwest: Adobe, Brooks Sports, Deloitte Digital, Google, Graphite, Tableau
  • F5 moving their corporate headquarters to new 516,000 SF tower in CBD in 2019
  • Bill & Melinda Gates Foundation: most significant global health organization in the world; current endowment of $40.3 billion
  • South Lake Union has become a life science employment hub and is one of the fastest growing centers in the nation: 3 miles away
  • Fred Hutchinson Cancer Research Center receives more funding from National Institute of Health than any other independent U.S. Research Center
  • Expedia relocating to 40-acre campus in Seattle by 2019 with 5,000 employees
  • Seattle Children’s Hospital, 2 miles east: consistently ranks top childrens hospital in the nation, ranked #1 in the Northwest in 2017
  • Over 65,800 Boeing employees in Washington: largest employer in the state
  • Microsoft’s world headquarters in Redmond undergoing multi-billion dolllar expansion

#1 City in U.S.
to find a job

Wallet Hub, 2015

#1 Fastest-growing
big city

US Census Bureau

#2 top city
for tech jobs

Geekwire, 2016

Location

Seattle

Surrounded by water, snow-capped mountains, and evergreen forests, Seattle is one of the most picturesque cities in the Pacific Northwest and features the most recognizable skyline on the West Coast. Seattle has an estimated population of over 704,000 with nearly four million people in the metro area. With a booming tech industry and home to Amazon’s global headquarters, Seattle is the second best tech market in the nation, only behind San Francisco. Other Fortune 500 companies in Seattle include Apple, Boeing, Facebook, Google, Microsoft, Nordstrom, Starbucks, and Weyerhaeuser.

In 2017, Seattle was ranked the fastest growing city in the U.S. with an annual growth rate of 3.1%. In 2018, Seattle remained one of the fastest growing cities, coming in second. Residents of the city enjoy a much lower cost of living than other cities such as San Francisco and New York, but still enjoy all the attributes that big cities have to offer – such as a thriving arts scene, world-class restaurants, and several mass transit options.

Wallingford

Wallingford is located just west of the University District on the other side of Interstate 5. The neighborhood features a nice mix of craftsman homes, historic buildings incorporated into the shopping districts, boutique shops, parks, restaurants, bars, and music venues that make this neighborhood a destination for Seattleites. Wallingford’s vibrant personality is displayed through several art installations that include statues, street paintings, and its annual Art Walk Festival every March.

Some businesses located in Wallingford that started almost 100 years ago are still in operation today, such as the Guild Theater, the landmark movie theater on 45th Street. Wallingford is home to Trophy Cupcakes, Molly Moon’s Ice Cream, Dick’s Burgers, Archie McPhee Toys and Gifts, and several ethnic restaurants which are ever-changing. Restaurants such as Joule and The Whale Wins were voted two of the best restaurants in the country by Bon Appétite magazine and are located in Wallingford.

University District

Located minutes from the downtown core, the University District is home to the University of Washington and its 46,600-plus students. The U-District has long been one of the Seattle area’s most vibrant and popular neighborhoods. It boasts the city’s second largest employment concentration and comprises the third largest retail hub with more than 1.2 million square feet of retail space.

University Way NE, colloquially “The Ave”, is the commercial heart of the University District and the off-campus extension of the University of Washington. The Ave is composed of an eight-block row of eclectic restaurants, bars, and boutiques. The U-District is one of the most walkable neighborhoods in Seattle with a WalkScore of 91. The Site is located within a five minute walk of The Ave and some of the U-District’s most popular shops, eateries, and entertainment.

University District Up-Zone

In February 2017, the City of Seattle passed new height limits for the University District neighborhood. The new up-zoning allows for buildings 240 feet to 320 feet in some areas along the retail corridor, allowing for a higher-density neighborhood.

To take advantage of these new increased densities, developers are required to add nine percent affordable multifamily units within new developments.

Greenlake

Centered around the lake which bears its name, Green Lake is one of Seattle’s most active neighborhoods. The community thrives with outdoor enthusiasts, athletes, and animal lovers; from bicyclists, skaters, and joggers, to strollers, bird-watchers, and afternoon picnickers. Fun activities for families and singles flourish all year around the lake, especially during the summer. Just a block away from the lake are quiet, tree-lined streets offering vintage-style craftsman homes.

Employers

Seattle CBD

The Site is located four miles from Seattle’s Central Business District (CBD). The CBD is the Pacific Northwest’s largest employment center which accounts for over 300,000 jobs. Major employers comprising the CBD job market include Amazon, Bank of America, Blue Nile, CenturyLink, Chase, Cobalt, Dendreon, DocuSign, EA Sports, Facebook, Getty Images, Google, Kaiser Permanente, HTC, Hulu, King County, Microsoft, Nordstrom, Oracle, Onvia, Port of Seattle, Russell Investments, Safeco Insurance, Starbucks, Swedish Medical Center, Twitter, Virginia Mason, Vulcan, Washington State, Wells Fargo, and Zillow.

In addition, companies such as Alibaba, Apple, HBO, Dropbox, and Payscale have opened up offices in and around the Seattle CBD. Expedia is currently underway with improvements on their future Seattle waterfront headquarters which is also slated to open in 2019. Expedia’s new campus, only 15 minutes from the Site, will bring an estimated 5,000 jobs to the city once open.

South Lake Union

Just across Lake Union from the University District is the bustling South Lake Union (SLU) neighborhood. SLU has continued to attract new jobs, residents, retailers, and visitors over the last several years. This includes life sciences research space, apartments, condominiums, retail establishments, and office developments.

South Lake Union is home to nearly 50,000 employees and continues to grow. The most significant employers are Amazon, which is currently expanding to nearly 14 million square feet, several life sciences organizations such as Fred Hutchinson, a top ten cancer research center in the nation, Seattle Biomedical Research, NBBJ, PATH, and Skanska. Other notable employers are REI’s flagship store, Kaiser Permanente, and Whole Foods.

Silicon Canal

With the large occupancy of tech companies in Wallingford and Fremont, the area has been dubbed “The Silicon Canal”, a play on Silicon Valley in California and the Lake Washington Ship Canal that the area borders. Google, Adobe Systems’ Seattle Office, BEA Systems, and Tableau Software are all located in the Silicon Canal region, just five minutes from the Site. Other companies include AdReady, Graphite, Impinj, Netmotion Wireless, Serial Solutions, Ubermind, Brightdream Creative, ContactPro, Graphic Lab, Groundspeak, and Deloitte Digital.

Amazon

Founded by Jeff Bezos in 1994, Amazon is the global leader in e-commerce and cloud computing with their world headquarters in Seattle. Amazon’s cloud computing services are among the largest in the world, serving everyone from small companies to large corporations and government agencies. In 2015, Amazon surpassed Walmart as the most valuable retailer in the U.S. by market capitalization. Amazon is the largest internet company in the world and the second most valuable public company in the world. Additionally, Amazon is the eighth largest employer in the United States.

Google

Google currently employs 1,900 people between its Seattle, Kirkland, and Bothell offices, making the Puget Sound the company’s third largest engineering location in the U.S. Google’s Kirkland and Seattle workforce is comprised mostly of engineers that are entirely responsible for Google Talk and Talk Video and helped to build Google Maps. Additionally, the Seattle and Kirkland offices have made significant contributions to Android, AdSense, AdWords, Analytics, Cloud, Chrome and Chrome OS, Gmail, the Google App., Search, YouTube, and much more.

Google’s presence in the Puget Sound region began in 2004, when it leased 30,000 square feet of space from Getty Images in Seattle’s Fremont neighborhood. Their Fremont location is currently 152,000 square feet and the company recently announced plans to expand to 607,000 square feet in Seattle’s South Lake Union neighborhood by 2019.

Facebook

Facebook, the multi-billion dollar online social networking service based out of Menlo, California, is the largest American owned IPO in history. The company has occupied space in Seattle since 2010. In 2015, Facebook expanded with a new move and ten year lease for 274,000 square feet at Dexter Station, just minutes south of the Site. Facebook employs mostly programmers in its Seattle office with room for an estimated 2,000 employees in their new expansion.

Bill & Melinda Gates Foundation

The Bill & Melinda Gates Foundation is led by CEO Dr. Susan Desmond-Hellmann and Co-chair William H. Gates Sr., under the direction of Bill and Melinda Gates and Warren Buffett. The Foundation works to help all people lead healthy, productive lives, throughout developing nations and the United States. With a current endowment of $40.3 billion, the Bill and Melinda Gates Foundation is the most significant global health organization in the world.

Due Diligence

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