1 222 5Th Ave North | Seattle Wa 98109 Development
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SECTION 1 THE OPPORTUNITY 222 5TH AVE NORTH | SEATTLE WA 98109 DEVELOPMENT OPPORTUNITY LISTED EXCLUSIVELY BY JLL 1 SECTION 1 THE OPPORTUNITY THE OPPORTUNITY JLL has been retained as the exclusive agent to sell Triple2, consisting The Seattle market is primed with low vacancy, strong leasing of 24,820 square feet on two adjacent parcels located in the shadow velocity, explosive population growth, superior proximity to top tier of the Space Needle in Seattle’s Uptown neighborhood. The existing employers and nation leading job and rent growth. Increasingly, building (currently occupied by a McDonald’s restaurant) and the younger employees want to work closer to home and enjoy everything adjacent parking lot are located within the Uptown rezone area, a vibrant urban setting has to offer. Half of all employees who work located at the base of Queen Anne Hill in and around the Seattle downtown live within 10 miles of their office. Almost two out of every Center. The Uptown rezone was approved by the City Council, 10 residents moving to Seattle between 2010 and 2016 chose to live in following the University District, Downtown, and South Lake Union the downtown core, and nearly 50 percent of downtown residents are neighborhoods. between the ages of 25 and 44. Triple2 is located in the eastern portion of Uptown, in a triangle of land near South Lake Union, between Denny Way, Broad Street and Aurora PROJECT SUMMARY – TRIPLE2 Avenue North, where maximum heights would increase from 85 to Address 222 5th Avenue N, 160 feet. Change is coming to the neighborhood with or without the Seattle, WA 98109 upzone, as the city and Seattle Public Schools plan to build a new King County Tax Parcels 1991200310; 1991200315 high school and stadium at Seattle Center. Sound Transit has plans Previous Zoning SM-85 Seattle Mixed Uptown for a light-rail station that would open in 2035, and the city is working Approved Upzone Zoning SM-UP 160(M) Seattle Mixed on an agreement to renovate KeyArena. With all of these changes, Uptown redevelopment and future light rail coming to the neighborhood, Total Project Lot Size 24,820 Square Feet / 0.57 Acres Triple2 is a one-of-a-kind development opportunity in the heart of an evolving neighborhood located in the core of downtown Seattle. Uptown and adjacent neighborhoods are experiencing rapid transition. Two new high rise office buildings for Amazon have recently been completed on 6th Avenue, just blocks south of Triple2, and three additional towers are under construction or in design review near the existing Amazon Doppler and Day One towers. Seattle has been named the crane capital of America for the second year in a row, and the local construction boom transforming the city shows no signs of slowing. LISTED EXCLUSIVELY BY JLL 2 SECTION 1 5 THE OPPORTUNITY LAKE UNION SOUTH LAKE UNION 99 Dexter Avenue N SOUTH LAKE UNION IS HOME TO AMAZON Harrison Street UW MEDICINE, GATES FOUNDATION AND MORE MEMORIAL STADIUM Fifth Avenue N Thomas Street SEATTLE CENTER John Street LISTED EXCLUSIVELYDenny Way BY JLL 3 SECTION 1 THE OPPORTUNITY INVESTMENT HIGHLIGHTS Irreplaceable Upzone Development Site Triple2 represents a rare opportunity to invest in Seattle’s explosive economic growth and to take advantage of a future upzone that will change the building height from 85 to 160 feet. With nation leading demographics, population and job growth, now is the time to invest in Seattle’s future. Seattle has a plethora of renters seeking high-end living options in the shadow of the Space Needle and blocks from Amazon’s ever expanding footprint. New apartment construction rents in and around Triple2 average $3.50 per foot for mid-rise and $4.00 per foot for high-rise buildings. Proximity to Top Tier Employers Seattle is a stable economy, driven by several stalwart companies as well as high-growth technology start-ups. Major employers in Seattle include Microsoft, Amazon, Starbucks, and Nordstrom. Amazon is seeing massive growth, Google leased 600,000 square feet in South Lake Union that will have room for up to 4,000 employees, Facebook will double its presence when the Arbor Blocks project is complete in 2018, with room for 2,500 employees. Expedia will move to Interbay in 2019 with room for 4,500 employees. Bill and Melinda Gates Foundation headquarters is just blocks from Triple2. The Foundation has 1,500 employees and a Foundation Trust Endowment of $40.3 billion. In addition to high-growth in the tech sector, the city of Seattle metro expects to add 70,000 jobs in 2017, and has a 3.3% unemployment rate. LISTED EXCLUSIVELY BY JLL 4 Untitled map Untitled layer SECTION 1 All items THE OPPORTUNITY High Earning Technology Based Rental Pool NerdWallet ranked Seattle as the second best place for STEM graduates, and the 5th top ten city for job seekers. The technology sector has become one of the most signifi cant drivers of employment growth. Seattle is ranked as the number one best paying city for software engineers, who make a median salary of $132,000. A growing tech industry is often considered the ultimate sign of a healthy local economy. From 2006-2016 the Seattle-Tacoma-Bellevue MSA saw 47.7% job growth in the tech industry and in 2016 had 145,824 tech jobs. According to Forbes, the Seattle area is 8th in the nation for cities creating the most tech jobs. Record Level of Housing Demand Increased demand for housing and favorable market demographics throughout the city are spurring developers to continue to build. From 2016 to 2017 the city added 60,800 jobs and absorbed 11,400 units, which equates to one unit absorbed for every fi ve jobs added. Amazon, Google, Facebook, F5 and Expedia all have future expansion plans that would grow their employment by a total of 67,400. These fi ve companies alone will generate demand for 13,480 apartment units in the next few years. Growing Transportation Infrastructure Triple2 enjoys exceptional access to Seattle’s extensive, and expanding, transportation network. The Seattle Streetcar connects South Lake Union to Westlake Center and the Sound Transit Light Rail system. Sound Transit’s light rail system currently provides service between downtown Seattle and Sea-Tac International Airport, the University of Washington, Capitol Hill, and service to the U-District and Northgate will start in 2021. Improvements are being made to metro transit service via an Uptown priority bus corridor. Sound Transit has plans for a future light rail station in Lake Union and at Seattle Center by 2035. Bicycle network links will have dedicated bike lanes and the Lake2Bay pedestrian corridor will improve access and transportation to and from Triple2. N LISTED EXCLUSIVELY BY JLL 5 SECTION 1 THE OPPORTUNITY Amazon.com Amazon has had a resounding impact on local employment and residential demographics. Amazon actively recruits out of state employees to fill their over 7,500 current job openings, which has a positive effect on net in-migration. The new reality is that much of the workforce wants to be in greater Downtown, and companies are willing to pay more per square foot to draw the best talent. Amazon’s growth seems unstoppable, it will continue to redefine Seattle, and contributes to keeping Seattle one of the nation’s fastest-growing cities. Amazon’s Day One and Doppler towers located on 6th avenue have room for over 7,000 employees, and construction is underway on Amazon’s third tower. When the third tower is completed in 2019, the full block at Westlake and Lenora avenues will have a 37-story tower and a seven- story building with a total of 1.1 million square feet of office, and more than 43,000 square feet of retail. Amazon is working on plans for a fourth block at 2200 7th Avenue, which will have a 24-story tower and an eight-story building with another approximately 850,000 square feet of office. Amazon also purchased a fifth site on 7th Avenue between Blanchard and Bell streets, and across the street from Day One tower. This site will contain a 17-story office building with 405,000 square feet. All together these sites comprise 4.55 million square feet of office space with room for 18,220 employees. Triple2’s proximity to Amazon and Seattle’s core, creates an ideal environment to capture future rent growth and return on investment. By 2022, Amazon’s workforce would reach 85,000 employees, and would occupy more than 12 million square feet across 40 buildings in Seattle’s core. LISTED EXCLUSIVELY BY JLL 6 SECTION 1 THE OPPORTUNITY SEATTLE TRENDING • Strongest West Coast real estate market (PwC & Urban Land Institute) • #1 economy in the nation for 2017 (Business Insider) • #1 best paying city for software engineers (Glassdoor) • #1 in STEM concentration (Forbes) • #2 most active tech office market in the country (Technology Office Outlook) • Best technology city (Milken Institute Tech-Pole Index) • One of the best start-up hubs in the world (Start-up Genome) • Smartest city in North America (Fast Company) • Best large metro for Generation Y workers (Forbes) • Best city for young professionals (Urban Times) • Top job market for 2017 college graduates (ZipRecruiter) • #1 for career opportunities and quality of life (Robert Half Career index) • Most popular city in America (Huffington Post) • One of America’s best cities (Businessweek) • #1 “hipster” city in America (Travel+Leisure) • Greenest city in America (Planet Forward) • Most sustainable city (Zipcar’s Future Metropolis Index) LISTED EXCLUSIVELY BY JLL 7 SECTION 2 PROJECT SUMMARY DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile 2017 Total Population: 49,435 180,146 214,461 The area surrounding the Triple2 Fifth Avenue offers a traditionally young 2022 Population Estimate: 55,090 194,268 230,084 renter profi le, with 41.3% of its residents between 20 and 34 years old within Pop Growth 2017-2022: 11.44% 7.84% 7.28% a one mile radius.