2.86-Acres | 124395 Sf
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2.86-acres | 124,395 sf REQUEST FOR PROPOSALS: unique development opportunity premier seattle land site located in south lake union INVESTMENT CONTACTS: Lori Hill Rob Hielscher Bob Hunt Managing Director Managing Director Managing Director Capital Markets International Capital Public Institutions +1 206 971 7006 +1 415 395 4948 +1 206 607 1754 [email protected] [email protected] [email protected] 601 Union Street, Suite 2800, Seattle, WA 98101 +1 206 607 1700 jll.com/seattle TABLE OF CONTENTS Section I The Offering 4 Introduction Investment Highlights Site Summary Objectives and Requirements Transaction Guidelines Section II Project Overview & Development Potential 17 South Lake Union Map and Legend Project Overview Zoning Zoning Map seattle Development Considerations Development Potential Section III RFP Process and Requirements 34 Solicitation Schedule Instructions and Contacts RFP Requirements Evaluation Process Post Selection Process Disclosures Section IV Market Characteristics 50 Market Overview Market Comparables Neighborhood Summary Regional Economy Section V Appendices 74 NORTH See page 75-76 for List of Appendix Documents Copyright ©2018 Jones Lang LaSalle. All rights reserved. Although information has been obtained from sources deemed reliable, Owner, Jones Lang LaSalle, and/or their representatives, brokers or agents make no guarantees as to the accuracy of the information contained herein, and offer the property without express or implied warranties of any kind. The property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. Section I THE OFFERING 4 | Mercer Mega Block | Request for Proposals 520 REPLACE MERCER STREET LAKE UNION DEXTER AVE N ROY STREET ROY 99 NORTH Last large undeveloped site in South Lake Union | Mercer Mega Block | Request for Proposals 5 THE OFFERING INTRODUCTION MERCER MEGA BLOCK JLL is pleased to present the Mercer Mega Block, a 2.86-acre site acquisition opportunity. This premier site is located on approximately three blocks in Seattle’s South Lake Union neighborhood, and contains three City of Seattle-owned parcels with a combined land area of 124,395 SF (the “Property”). Flexible zoning allows for office, retail, life sciences, multifamily, and hotel development. Located on Mercer Street, the primary thoroughfare connecting Queen Anne and South Lake Union to Interstate 5, the asset is ideally positioned within the city’s most thriving neighborhood to live, work and play. The property is within walking distance to award-winning restaurants, a variety of retail and entertainment venues, major employers, and multiple transit options. South Lake Union is arguably the hottest office market in the country, as evidenced by 14 consecutive years of positive net absorption of Class A space. Housing prices have grown at the fastest rate in the country for the past 17-consecutive months. The 12.9% year-over-year growth is more than double the national growth rate. Multifamily rents 9th Ave N increased by 3.1% year-over-year and vacancy is just 4.2%. The site offers investors the opportunity to develop more than one million square feet (“SF”) in the most dynamic and desirable submarket in Seattle. South Lake Union boasts an impressive roster of Dexter Ave N Mercer Street well-known employers such as Amazon.com, Google, Facebook, Apple, Twitter, Uber, and Tommy Bahama. It is the epicenter for world-renowned life sciences research institutions like Seattle Cancer Care Alliance, Fred Hutchison Cancer Research Center, The Allen Institute for Brain Science, and Juno Therapeutics. The area is also home to the Bill & Melinda Gates Foundation, the largest NORTH 99 private foundation in the world. This adaptable neighborhood continues to welcome and encourage innovation and prosperity. | Mercer Mega Block | Request for Proposals 6 THE OFFERING INVESTMENT HIGHLIGHTS SUPERB LOCATION FAVORABLE DEMOGRAPHICS The 2.86-acre land site is ideally positioned within South Lake Union, located 45.3% of households in the area earn more than $75,000 annually, and 32.7% on Mercer Street (between 9th Avenue North and Dexter Avenue North). earn more than $100,000. Seattle is ranked as the number one best-paying South Lake Union is Seattle’s fastest growing neighborhood, with a current city for computer programmers and number three for software engineers, workforce of 58,000, a population of 32,000, and over 240 restaurants and who make average salaries of $109,345 and $122,125, respectively. Younger 260 retail establishments. South Lake Union workers, those under the age of 30, are more likely than their older colleagues to live close to work. More than half of the people CENTRAL TO MAJOR EMPLOYMENT living in South Lake Union are in the peak earning ages of 25 to 44 years old. Positioned just north of the Seattle Central Business District (“CBD”) Additionally, 72.1% of the residents aged 25 and older have attained at least submarket and adjacent to the shores of Lake Union, this continually evolving a Bachelor’s degree. submarket has a diverse product and tenancy type that has continued to mature over the last decade. The result of this growth has brought high DEVELOPMENT POTENTIAL demand from major tech and life sciences tenants now anchored in South The site is zoned Seattle Mixed South Lake Union (“SM-SLU”) 175/85- Lake Union. 280. The site allows for mixed-use development of approximately 1.23M chargeable SF, or 9.87 FAR, with a net site area 124,395 SF. For residential SUPERIOR TRANSPORTATION use, the net site area is 113,160 SF, providing 1.2M chargeable SF and a FAR Mercer Mega Block boasts a transit score of 87 and is well connected to of 10.60 (1,358 units). Commercial consideration would equate to a net site the region. The site offers access to metro bus routes, RapidRide express area of 124,395 SF, 996,652 chargeable SF and a FAR of 8.01. transit, the South Lake Union Streetcar, and easy freeway access to SR-99, I-5, and SR-520. Additionally, once construction is complete, the Alaskan The Mercer Mega Block site provides maximum flexibility, Way Viaduct replacement will connect to SR-99 just a block from the site. with development potential for a variety of uses including The light rail system (located less than one mile from the site) currently stretches from the University of Washington to the SeaTac Airport and will office, retail, life sciences, multi family or hotel, all with expand further north, south, and east in the coming years. Private bike share extraordinary water, mountain and city skyline views programs Spin, Ofo, and VBikes have launched pilot programs in Seattle and hope to install up to 20,000 bikes around the city in the next three years. 58,221 #1 45.3% OF 2.9% 3.9% LOCAL economy households job growth population EMPLOYMENT IN THE NATION FOR 2017 EARN $75K+ ANNUALLY 2017 STATE OF WA 2017 GROWTH IN SEATTLE | Mercer Mega Block | Request for Proposals 7 LAKE UNION 99 8TH AVE N AVE 8TH ROY STREET N AVE 9TH NORTH DEXTER AVE N MERCER STREET | Mercer Mega Block | Request for Proposals 8 THE OFFERING SITE SUMMARY E NEWTON STREET 5 Site Detail Mercer East Mercer West Dexter N 8TH AVENUE Address 800 Mercer St 800 Mercer St 615 Dexter Ave N Gareld PEDESTRIAN BRIDGE Size 44,067 sf 56,568 sf 23,760 sf Lake Union E EASTLAKE AVENUE EASTLAKE E E LAKEVIEW BOULEVARD LAKEVIEW E Highland Street N Ave Fairview Acres 1.01 acres 1.30 acres 0.55 acre WATERWAY PROPOSED Prospect Street Parcel #s APN 224900-0006 APN 224900-0055 APN 224900-0120 Ward Street N Warren Avenue N Warren E BELMONT AVENUE N Nob Hill Ave Ave N Nob Hill N 2nd Avenue Ward Street N 1st Avenue Westlak Ave N Taylor AVe Taylor N Avenue 3rd N 4th Avenue N 5th Avenue 6th Ave 6th Ave N Aloah Street Lake SM-SLU 175/85-280 SM-SLU 175/85-280 SM-SLU 175/85-280 9999 Union Park Aloha Street Zoning Valley Street VALLEY STREET Valley Street Roy Street Roy Street Height Limit (feet) 224900-0120 MERCERMercer MercerSTREET Street St McCaw Hall Bill & Melinda Gates Foundation Residential 280 280 280 Headquarters Eastlake Ave Ave Eastlake N Republican Street Memorial Street Broad south lake union N Yal AVe N Yal Stadium N DEXTER AVENUE Key Arena 224900-0055 Harrison Street Westlake Ave Ave N Westlake 8th Ave 8th Ave N North Terry Commercial 175 175 175 9th Ave N E Avenue harvard E Boylston Avenue Seattle Experience 224900-0006 E Avenue Federal Cascade Music E 10th Avenue Center E 11th Avenue E 12th Avenue Project P-Patch E Belmont Place Thomas Street E Broadway 5 Space E Summit Avenue Needle Ave Fairview N Ave Boren Mixed-Use 280 280 280 Ave Pontious E Melrose E Bellevue John Street Minor Pacic Science Center Denny Park Total Development Potential (sf) Denny Way YALE AVE Buildable Sq. Ft. Units FAR MINOR AVE Clay Street BOREN AVE Residential 1,199,013 1,358 10.60 Cedar Street TERRY AVE WESTLAKEAVENUE Vine Street Wall Street 9999 Center Commercial 996,652 N/A 8.01* Transit Mixed-use 1,228,060 563 9.87 Bell Street OliveCBD Way 9th Ave Blanchard Street 8th Ave Westlake Center 7th Ave *Over FAR, limit development of 8.0 Lenora Street 6th Ave Washington State Virginia Street 5th Ave Convention Center 4th Ave Stewart Street waterfront Pine Street 3rd Ave 2.86 acres / 124,395 SF / 1.2 million SF of development 2nd Ave 1st Ave NORTH Pike Street potential in the heart of Seattle’s hottest submarket WESTERN Union Street AVENUE University Street Seneca Street 99 Spring Street | Mercer Mega Block | Request for Proposals Madison Street 9 Marion Street State Ferries Washington Washington THE OFFERING OBJECTIVE AND REQUIREMENTS DEVELOPMENT REQUIREMENTS PURPOSE OF SOLICITATION The following development requirements are minimum commitments to Through a competitive Request for Proposal (“RFP”) process, the City of be considered responsive to the RFP; and will be contractual agreements Seattle is planning on offering for redevelopment the three sites.