Offering Summary

Overview

Kidder Mathews is pleased to exclusively list one of Seattle’s first Passive House development sites for sale. Designed by an award-winning development and design team, the 13th & Pike development site is located in Seattle’s premier Capitol Hill neighborhood, at the site of the original Fran’s Chocolate factory.

Known for its lively nightlife, trendy eateries, and boutique shops, Capitol Hill is a hub for everything that is exciting about Seattle. 13th & Pike’s 50-yard line location at the heart of Capitol Hill’s Pike / Pine Corridor offers residents a WalkScore of 99 out of 100, with the most active sidewalk scene in the city. Additionally, residents are only steps away from unparalleled mass transit options such as the Seattle Streetcar, Link Light Rail, Metro buses, and bike sharing programs offering convenient access to adjacent neighborhoods, regional, and interstate destinations.

Transit Oriented Development

13th & Pike is located only four blocks from the Broadway and Pike Streetcar stop and half a mile from the new Capitol Hill Light Rail station, lending itself to an ideal Transit-Oriented Development (T.O.D.). T.O.D. sites appeal to Seattle and Capitol Hill renter demographics and can achieve rental premiums of at least 15% compared to similar non T.O.D. communities.

Executive Highlights

  • Transit-Oriented Development (T.O.D.) Site
  • Shovel ready project: building permits approved
  • 50 Yard Line Location: heart of Pine / Pike Corridor in Capitol Hill
  • Corner site with frontage on Pike Street: excellent visibility
  • High barrier-to-entry location: challenging neighborhood review board
  • 45 residential units: efficient layouts with studio, open one, one, and two bedroom homes
  • ±3,234 square feet of street level retail: prime retail location
  • Multifamily Tax Exemption (MFTE) Program
  • Unique Passive House development: one of the first in Seattle
  • Original headquarters of the famous Fran’s Chocolates: voted best chocolate in America
  • Passive House is held to high standards for energy conservation
  • High-end contemporary finishes and community amenities
  • Boutique community, location, and development concept appeals to target renter: young professionals, high-tech employees, and environmentally conscience residents
  • Unparalleled transit options within blocks: Capitol Hill Link Light Rail, Metro Bus Lines, Seattle Streetcar, Microsoft Connector Shuttle
  • Walking distance to Seattle CBD, Fortune 500 companies, restaurants, boutiques, grocery stores, coffee shops, bars, and music venues
Walk Score

99

Transit Score

81

Bike Score

86


Development Highlights

  • 8,902 square foot site zoned NC3-65P: 65 foot height limit in Pedestrian Designated Zone, flexibility in retail use
  • A+ Development Team: Barrientos | Ryan, Cascade Built, Weber Thompson
  • Barrientos | Ryan LLC: renowned local developer with exclusive focus in core Seattle neighborhoods; extensive expertise in Pike / Pine corridor
  • Cascade Built: award winning sustainable builder that employs Passive House construction techniques
  • 100% of construction drawings complete
  • Elevator served building
  • Integrated kitchens with upgraded stainless steel appliances, including microwaves
  • Weber Thompson: premier architect for commercial real estate on the West Coast and in Seattle
  • Contemporary residential lobby entrance from 13th Avenue
  • Amenities include: rooftop deck with views of Seattle skyline, community courtyard, 23-stall community parking garage
  • Efficient floor plans averaging ±563 SF
  • Open layouts with floor-to-ceiling windows; select homes with large outdoor balconies and terraces
  • Stone countertops and backsplashes, undermount sinks, tile in bathrooms
  • Vinyl plank flooring throughout the homes
  • 23 residential parking stalls

Passive House Characteristics

  • Rigorous development standard for energy efficiency in a building, reducing its ecological footprint
  • Air tight, super-insulated building envelope: 50% energy reduction, reduced noised polution
  • Ultimate thermal comfort, even in extreme weather conditions, with significantly reduced energy costs
  • Automated / manual exterior mechanical shades on western and southern sides of the building for sun exposure
  • Residents can still individually control their thermal environment in each home
  • Heat recovery ventilation system that provides cooling and heating to all homes
  • Continuous, filtered fresh air circulated into the homes
  • Passive House rated double-pane windows with airtight seals
  • Energy efficient hot water system
  • Rigid insulation on top of slab and roof
  • Appeals to environmentally conscience residents: Seattleites
  • Seattle residents have decreased energy usage 8% in homes since 2008
  • Reoccurring operating / utility expenses significantly lower compared to standard multifamily projects
  • Building will save approximately 18.8 tons of CO2 per year
  • Passive House motto: “Maximize gains, minimize losses”

Market Overview

50-Yard Line Location

  • Capitol Hill is one of Seattle’s top neighborhoods
  • Pine / Pike Corridor is the strongest rental market in the region
  • Premier apartment communities in Capitol Hill averaging upper $3.00 PSF rents
  • Prime retail stores in Capitol Hill paying $40 to $50 PSF rents plus CAM charges
  • Capitol Hill vacancy at 3.3% per Dupre + Scott
  • Capitol Hill has the lowest historical vacancy in Washington State
  • Walkscore of 99: Walker’s Paradise
  • Bike Score of 85: Very Bikeable; Transit Score of 79: Excellent Transit
  • Five blocks from Capitol Hill Light Rail Station, two blocks from Seattle Streetcar
  • Light Rail links to University of Washington, five minute ride from Capitol Hill
  • Light Rail links to University of Washington, five minute ride from Capitol Hill
  • Two blocks from main thoroughfare Broadway Ave: dedicated bicycle lanes
  • Over 100 restaurants within one mile of the Property
  • Three blocks from Cal Anderson Park: top 12 urban park by Forbes
  • Seattle University, and Central Seattle Community College within five blocks
  • Medical epicenter: Swedish Medical, Virginia Mason, Harborview Medical, Polyclinic, and Kaiser Permanente located within one mile
  • One mile from Seattle CBD, two miles from Amazon’s World Headquarters and South Lake Union life science hub
  • Other major employers nearby: Google, Facebook, Tableau, Dropbox, Zillow, Redfin, Gates Foundation, Nordstrom, UW Medical Research, Fred Hutch Cancer Research

Strong Regional Fundamentals - Greater Seattle Area

  • Seattle MSA ranked second best apartment market in the nation
  • Tri-County rents grew 6.9% in 2016, 7.2% in King County
  • Puget Sound added 61,300 new jobs in 2016, another 49,800 projected for 2017
  • 138,600 new jobs projected from 2017 – 2021 in Puget Sound region
  • Puget Sound employment grew 3.1% in 2016 compared to national average of 1.8%
  • Seattle ranked #4 in the nation for businesses and careers in 2016 by Forbes
  • Seattle MSA ranked #3 on Glassdoor’s Best Cities for Tech Jobs based on employment and salary growth
  • Seattle MSA ranked #1 best metro area for STEM professionals in 2017 by WalletHub.com
  • Seattle MSA ranked #2 for highest percentage of workforce in STEM and #1 in STEM wage growth
  • Personal incomes for Puget Sound grew 9% over the past two years combined
  • Puget Sound Regional Council projects 4.9% personal income growth in 2017
  • Every five new jobs creates one net new renter; projected 27,720 net new renters between 2017 - 2021 for Puget Sound
  • 4.6% population growth forecasted from 2017 - 2020 for Puget Sound

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

Wallet Hub, 2015

#1 Nation’s most
sustainable city

STAR Communities

#2 top city
for tech jobs

Geekwire, 2016

Location

Capitol Hill

The 13th & Pike site is located in the heart of one of Seattle’s most popular and desirable residential neighborhoods. A neighborhood unlike any other, part hip and urban, part wooded and stately, Capitol Hill often feels like a small town in itself, one that a vast variety of businesses call home. “The Hill”, as it is known by locals, earned its name when it was the planned site for Washington’s state capitol. It was the epicenter for the grunge rock revolution in the 1990’s and remains one of the trendiest scenes in Seattle as well as the most densely populated neighborhood in Washington. Historically it has the lowest apartment vacancy rates in the State.

The main thoroughfares include Pine, Pike, and Broadway. These streets are dotted with coffeehouses, taverns and bars, and residences cover the gamut from modest motel-like studio apartment buildings to some of the city’s grandest and most distinguished mansions, with the two extremes sometimes shoulder-to-shoulder.

Neighborhood Amenities

The Pike / Pine corridor is lined with fine dining restaurants, quiet wine bars, sophisticated gastropubs, and authentic taverns surrounding the development site. The roughly fifteen-block radius of this neighborhood offers the ambiance of a small community with the sophistication and convenience of big city living. There are nearly 50 restaurants and bars, more than 30 shops, 15 coffee houses, and a dozen galleries and theaters that call this neighborhood home. The neighborhood boasts the most active sidewalk scene in Seattle. Along with downtown professionals, it is common to see artists, foodies, and other creative types meandering down the street to art galleries, independent boutiques, and coffee shops.

Capitol Hill neighborhood highlights include the Broadway Farmers Market, a seasonal fiesta of food, flowers and music; Cal Anderson Park, voted one of the top 12 parks in the nation by Forbes in 2009; and the Pike / Pine Corridor’s vintage clothing stores, furniture shops, and coffeehouses. There are also events that are held in the neighborhood including the 12th Avenue Neighborhood Festival annually in late summer and the Capitol Hill Block Party, a 3-day festival spanning six city blocks with performances on three stages by over 100 local and national bands.

Broadway Avenue East is home to a couple of the city’s favorite pieces of public art: bronze dance steps set into the sidewalk and a statue of one of the city’s most famous past residents, Jimi Hendrix. At the north end of Broadway sits Volunteer Park, a large, 48-acre forested urban oasis, replete with a glass conservatory built in 1912, the Seattle Asian Art Museum, and a water tower with 360 degree views of downtown Seattle and neighborhoods near and far. Located north of Volunteer Park is the historic Lake View Cemetery which holds the graves of Seattle pioneers and martial arts film stars Bruce and Brandon Lee.

The neighborhood truly comes alive at night, with one of the city’s most popular afterdark club scenes in the Pike / Pine corridor. Popular venue’s include; Neighbors, Rock Box, R Place, Tango, Grim’s, Barca, Cha Cha Lounge, Unicorn, Rhein Haus, and many more.

A large portion of Seattle’s performing arts and live music scene thrive on Capitol Hill. Music venues like The Chapel, Chop Suey and Neumos were made popular during the grunge era. Locals frequent two popular Landmark movie theaters, the Egyptian and the Harvard Exit, which feature beautiful architecture and design. These theaters participate in the Seattle International Film Festival and the Northwest Film Forum annually.

Seattle CBD

Just a short walk from the site, Seattle’s Central Business District is the Pacific Northwest’s largest employment center which accounts for nearly 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, Kaiser Permanente, HTC, Hulu, King County, Microsoft, Nordstrom, Onvia, Port of Seattle, Russell Investments, Safeco Insurance, Starbucks, Swedish Medical Center, Tully’s Coffee, Twitter, University of Washington, Virginia Mason, Vulcan, Washington State, Wells Fargo, and Zillow.

In addition, companies such as Alibaba, Apple, HBO, Dropbox, Payscale, and Weyerhaeuser have opened up offices in and around the Seattle CBD. Expedia is currently underway with improvements on their future Seattle waterfront headquarters which is slated to open in 2019. Expedia’s new campus will bring an estimated 4,500 jobs to the city once open. Other high tech companies such as Adobe, Google, and Tableau are located just three miles north of the CBD in Seattle’s Fremont neighborhood.

South Lake Union

Directly north of Downtown is Seattle’s newest neighborhood, South Lake Union. This neighborhood 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 over 13 million square feet, the 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 (formerly Group Health), and Whole Foods.

First Hill

Located just south of Capitol Hill, First Hill has emerged as a true urban village as the city’s downtown business core has extended across Interstate 5 into the neighborhood’s western border. First Hill is characterized as a close-in urban area with small, but densely developed commercial areas surrounded by residential uses.

Seattle’s first wealthy residents settled here to escape the more industrial nature of Pioneer Square. Today it is developed with a number of apartment and condo towers, historic homes, and one of the largest medical complexes in the nation. In fact, so many medical uses dominate the neighborhood that it has been nicknamed “Pill Hill” by some. Major institutions dominate the landscape and generate 77,220 local jobs. Harborview Medical Center, Swedish Hospital, and Virginia Mason Medical Center are all centered in First Hill. Seattle University and St. James Cathedral are other predominate institutional uses in the neighborhood.


Employers

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 fourth most valuable public company in the world. Additionally, Amazon is the eighth largest employer in the United States.

Swedish Medical Center

Swedish Medical Center is an established regional health care provider, operating in the Seattle area for over 100 years. They are also the largest nonprofit health provider in the Greater Seattle area, with five hospitals throughout the area, specialty care and emergency rooms in Redmond and Mill Creek, over 100 primary care and specialty clinics that comprise the Swedish Medical Group, and relationships with suburban hospitals and physician groups.

Swedish employs over 9,450 workers, including 6,023 physicians and allied health professionals. Today, the Swedish Cancer Institute treats more people for more types of cancer than any other provider in the Pacific Northwest. The Swedish First Hill Campus is half a mile from 13th & Pike.


Virginia Mason

Located less than one mile southwest of the 13th & Pike site, Virginia Mason Medical Center is a private, nonprofit organization. Virginia Mason offers integrated health services with more than 470 physicians who provide primary and specialized care. With an annual revenue of $979 million, Virginia Mason employs over 5,500 staff members. Approximately 182 of the physicians have faculty appointments at the University of Washington. In 2016, Virginia Mason was named one of America’s 100 Best Hospitals by Healthgrades.

Life Sciences and The Gates Foundation

Life science organizations in Seattle include the Benaroya Research Institute at Virginia Mason, Fred Hutchinson Cancer Research Center, the Institute for Systems Biology, Seattle BioMedical Research Institute, Pacific Northwest National Laboratory, and the UW School of Medicine.

With a current endowment of $40.3 billion, the Bill and Melinda Gates Foundation is the most significant global health organization in the world. Located in South Lake Union, The Foundation’s 900,000 square foot campus currently houses 1,453 employees. The first phase of construction was completed in 2011 and is comprised of two six-story boomerang shaped buildings at a cost of $500 million. The third building to The Foundation, which is an additional 400,000 square feet, has the capacity for an additional 500 employees and is planned to be built in the future. The Foundation buildings make up the largest certified LEED Platinum campus in the world.

Due Diligence

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