2500 elliott - · pdf file2500 elliott avenue in seattle ... insurance company is available...

www.centurypacificlp.com 1201 Third Ave, Suite 1680

Seattle, WA 98101

CenturyPacific

Elliot t Bay

L a k e Wa s h i n g t o n

ContactMichael E. [email protected]

2500 ELLIOTT Ground Lease Offering Memorandum

Multifamily RedevelopmentGround Lease Opportunity

2500 Elliott AvenueSeattle, WA

PROPERTY


Seattle, WA 98101

2CenturyPacific


PROPERTY OFFERING MEMORANDUM

The owners of 2500 Elliott (“Owners”) have engaged CenturyPacific, LLLP (“CenturyPacific”) as real estate advisor and agent, on an exclusive basis, in connection with a proposed ground lease of the property located at 2500 Elliott Avenue in Seattle (the “Property”).

This Confidential Offering Memorandum (“Memorandum”) is being delivered to a limited number of parties who may be interested in the Property. By acceptance hereof, each recipient agrees not to reproduce or use in whole or in part the information contained herein, or any other information that is not already public, and to use this Memorandum only for the purpose of evaluating the leasehold offering.

This Memorandum has been prepared based partly upon information furnished by the Owners, who have reviewed it and authorized its use for the purpose and in the manner described above. The Owners, CenturyPacific, shareholders, partners and affiliates make no representations or warranties with regard to the accuracy or completeness of the information contained herein. CenturyPacific has conducted a limited review of the information contained in this Memorandum, but has not independently verified the accuracy or completeness thereof. CenturyPacific does not represent or warrant the accuracy or completeness of the information contained in this Memorandum. Nothing contained in this Memorandum should be construed as a representation by any person as to the future possibilities or performance of the Property.

EACH POTENTIAL LESSEE IS EXPECTED TO CONDUCT ITS OWN DUE DILIGENCE.

CenturyPacific, LLLP1201 Third Avenue, Suite 1680

Seattle, WA 98101


Seattle, WA 98101

3CenturyPacific


TABLE OF CONTENTS

I. INVESTMENT SUMMARY 4

II. GROUND LEASE TERMS 6

III. NEIGHBORHOOD 8

IV. MAPS & PHOTOS 11

V. TRANSACTION DETAILS 15


Seattle, WA 98101

4CenturyPacific


I. INVESTMENT SUMMARY 2500 Elliott

OVERVIEWThe owners of 2500 Elliott Avenue are offering for long-term ground lease a highly-visible, 14,400 square foot redevelopment parcel located on the corner of Elliott Avenue and Wall Street in Seattle’s Belltown neighborhood (“the Property”). The Property—with commanding views and excellent proximity to Elliott Bay, downtown, and Amazon’s new corporate headquarters—is one of downtown Seattle’s premier residential redevelopment sites.

SITE SUMMARYAddress: 2500 Elliott Avenue Seattle, WA 98121

Land Area: 14,400 SF

Parcel Number: 0653000165

Zoning: DMR/C 125/65 Wall Street, the southern boundary of the Property, is a “View Corridor” (SMC 23.49.024)

PROPERTYThe Property is located on the east side of Elliott Avenue between Vine Street and Wall Street in Seattle’s Belltown neighborhood. The site is square in shape, with approximately 120 linear feet of frontage on Elliott Avenue (north/south) and 120 linear feet of frontage on Wall Street (east/west). At present, the Property is under-improved with a two-story, 3,300 SF building in poor repair (southwest corner) and a parking lot (north portion of the site). The Property is served by an alley to the east and slopes downward to the west to meet Elliott Avenue at-grade. The City of Seattle’s Belltown P-Patch and Belltown Cottage Park are located immediately to the north of the Property.

NEIGHBORHOODThe Property is located in Seattle’s Belltown neighborhood, adjacent to downtown, Uptown, the Waterfront and the Denny triangle. Belltown is one of the most desirable mixed-use residential locations available in the Pacific Northwest (see Section III).


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INVESTMENT SUMMARY 2500 Elliott

ZONINGThe Property is zoned DMR/C 125/65 by the City of Seattle. This zone permits a variety of residential, office, retail and hospitality uses. Per the Seattle Municipal Code, a residential redevelopment would have no maximum floor area ratio (FAR) and would have a maximum height of 125-feet. In the DMR/C 125/65 zone, maximum lot coverage is 100% up to 65 feet, 75% from 65’-85’, 65% above 85’-125’. Along Wall Street, the southern boundary of the Property, the “View Corridor” per SMC 23.49.024 limits the 100% lot coverage to 50’ in height and requires a setback of 40’ above the 50’ podium.

TITLE REPORTA current, preliminary title report issued by First American Title Insurance Company is available from CenturyPacific. 2500 Elliott benefits from a shadow easement across the city-owned property to the north.

ENVIRONMENTALNo known issues. Prospective ground lessees should conduct their own environmental and other due diligence.

WESTERN AVE

BATTE

RY S

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VINE

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ELLIOTT AVE

WALL

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II. GROUND LEASE TERMS 2500 Elliott

BASE RENT The Owners are seeking proposals for an unsubordinated, absolute net ground lease. Please provide the land value offered and ground rent multiplier proposed to calculate the annual rent.

TERM The proposed term is 75 years, with two (2) ten (10) year options to extend the Term, subject to maintaining improvements and other provisions.

RENT ESCALATIONS Ground rent will be adjusted annually to reflect any percentage increases in the Seattle Area Consumer Price Index for “All Urban Consumers” (CPI-U; 1982-1984 = 100). To facilitate Lessee’s financing now or in the future, the increases will include a floor of 2.5% and a cap of 5.5%. Additionally, the underlying land will be re-appraised, without reference to current use, once every 10 years beginning at the commencement of year 15. In no event will the ground rent be less than that of the CPI-escalated prior year rent.

DUE DILIGENCE & CLOSING The Owners propose a sixty (60) day period after mutual execution of a Letter of Intent for the Lessee to inspect the Property and perform general feasibility. Within 30-days following the Lessee’s waiver of feasibility, the parties will negotiate and execute a ground lease.

LEASE COMMENCEMENT DATEThe ground lease will commence upon the execution of the ground lease.

EARNEST MONEY Upon execution of the Letter of Intent, the Lessee will deposit the full amount of the first year’s rent with First American Title Company. This Earnest Money is fully-refundable until the end of the Due Diligence period, at which time 10% will become payable to Lessor and applicable to the first year’s rent. Lessor and Lessee will agree to negotiate in good faith over the subsequent 30-day period to consummate a ground lease. The remaining 90% of the Earnest Money will be payable at lease execution and will be applicable to the first year’s rent. Should a ground lease not be executed after Lessee’s waiver of feasibility, 10% of the Earnest Money will remain with Lessor as compensation for its lease preparation expenses and opportunity cost associated with pursuing a ground lease with the Lessee.


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GROUND LEASE TERMS 2500 Elliott

CLOSING EXPENSES & BROKERAGE FEESThe parties will share the escrow expenses on an equal basis. Real estate taxes will be prorated as of the date of Lease Commencement. Lessor and Lessee shall pay their own legal and real estate advisory/brokerage fees.

UNSUBORDINATED GROUND LEASEThe ground lease will be fully unsubordinated. All loans, claims and other interests shall be fully subordinate to the Lessor’s interest in the property.

PERSONAL GUARANTIESThe Lessor will require the Lessee to guarantee the payment of rent and other performance under the lease. Once the majority of improvements are completed, with a minimum value of $25 million and receipt of a certificate of occupancy, the guarantee will be released. Lessor will require current financial statements from Lessee. Lessor’s willingness to move forward with a lease is expressly conditioned on its approval, in its sole discretion, of such financials.

COMPLETION ASSURANCEThe Lessee will provide a completion bond or other equivalent financial assurance before undertaking any construction, major renovation or material lienable action on the Property.

ASSIGNMENTThe ground lease shall not be assigned without the prior written consent of Lessor.

LESSEE’S RIGHT OF FIRST OFFERIn the event the Lessor elects to sell its interest in the ground lease, Lessee will have a right of first offer to acquire Lessor’s interest.

PROPERTY LEASED “AS IS”The Property is offered for lease “AS IS” with no representations or warranties relating to fitness of use, environmental condition or code compliance, etc. Lessor encourages Lessee to conduct its own feasibility and environmental studies.


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76 99

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WOODINVILLESHORELINE

SEAT TLE

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520

I-90

I-5

Travel distance in 30 minutes via public transportation.

III. NEIGHBORHOOD2500 Elliott

LOCATION & AMENITIESThe Property is centrally located in Seattle’s Belltown neighborhood, adjacent to downtown, Uptown and the Waterfront. This highly desirable location offers residents walkable options for dining, entertainment, work and play. Three blocks to the north is the Olympic Structure Park. Pike Place Market is five blocks to the south. The adjacent Uptown neighborhood amenities include Seattle Center, Key Arena, the Space Needle and the Experience Music Project. Amazon’s new campus is to the east of the Property and the downtown business core is just a few blocks south. All destinations are easily accessed by foot, bus, bike, streetcar, taxi or car. Belltown offers some of Seattle’s best cuisine, including six Tom Douglas restaurants, El Gaucho, Aqua, Tavolata, Black Bottle, and Macrina.

BELL STREET PARKBell Street Park, located just blocks from the Property, is downtown Seattle’s newest green space. This newly completed project transformed four blocks of Bell Street between First and Fifth Avenues into a 56,000 SF vibrant, green space for residents of one of Seattle’s fastest growing neighborhoods. Encouraging pedestrians, cyclists, and automobiles to share the space, this 4-block section is the first phase of a long-range plan for a park corridor stretching from South Lake Union to Elliott Bay.

ACCESS & TRANSPORTATIONWith a “Walk Score” of 96 out of 100, the Property is a “Walker’s Paradise” and has one of the best Walk Scores in the city. The neighborhood’s growing population of over 10,000 residents enjoy convenient access to live, work and play needs – all within minutes.

The Property has robust public transportation (Score: 99, “Rider’s Paradise”), with service by more than 50 bus lines. 2500 Elliott is very bike-able (Score: 76), with excellent bike lanes. The neighborhood has nine car shares from Zipcar, a supply that is expected to grow to meet increasing demand. Additionally, the South Lake Union Streetcar, Link Light Rail, the Seattle Monorail and other transportation options (Car2Go, Uber, etc.) are readily available.

Access to Highway 99 is from Elliott at Battery Street, three blocks to the south. I-5 is accessed from either to Mercer Street and Denny Way.

Nearby neighborhoods: The Waterfront, Denny Triangle, Uptown, South Lake Union, and Downtown.


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1st Ave

5th Ave

8th Ave

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Bell St

Pike St

Western Ave

Columbia St

Cherry St

Yesler Way

Boren Ave

Boren Ave

Broadway

University St

Seneca St

Spring St

Marion St

Batter

y Stre

et Tu

nnel

Denny Way

Western Ave

Elliott Ave

Vine St

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Clay S

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Queen Anne Ave N

Denny Way

Republican St

7th Ave8th Ave

9th Ave

Minor AveYale Ave

Fairview Ave N

Alaskan Way

Mercer St

Aloha St

Valley St

Galer St

Taylor Ave NW Roy St

E Pike St

E Pine

E Union St

E Thomas St

E Harris St

E Mercer St

E John St

12th Ave E

E Spring St

10th Ave E

Lake

view B

lvd E

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Yale Ave N

Summ

it Ave E

Boylston Ave E

13th Ave E

Belmont Ave

Bellevue Ave

14th Ave E

15th Ave E

E Prospect St

1st Ave

3rd Ave

7th Ave

6th Ave

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E l l i o t t B a y

CAPITOL HILL

DOWNTOWN

YESLER TERRACE

QUEEN ANNE

UPTOWN

WESTLAKE

SOUTH LAKE UNION

FIRST HILL

BELLTOWN

EASTLAKE

HarborviewMedical Center

Pike PlaceMarket

Volunteer Park Conservatory

Seattle University Park

Cal Anderson Park

EMP Museum

Space NeedlePacific

Science Center

AmazonCampus

Olympic Sculpture

Park

Key Arena

NEIGHBORHOOD2500 Elliott

DEMOGRAPHICSThe Belltown neighborhood is the most highly-educated neighborhoods of the downtown neighborhoods, with over 72% of the 25+ year old residents holding Associates Degree or higher and boasting the highest income levels in downtown. (Source: Downtown Seattle Association, MID research)

NEARBY EMPLOYERSThe Belltown neighborhood is expected to be one of the primary beneficiaries of employment growth in the region. Companies with offices within easy commute distance of the Property include: Amazon, Microsoft, Bill & Melinda Gates Foundation, University of Washington Medicine, Seattle Biomedical Research Institute, Group Health, and hundreds of downtown employers.


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99

L a k e U n i o n

Elliott Bay

DOWNTOWN

QUEEN ANNE

UPTOWN

WESTLAKE

SOUTH LAKE UNION

BELLTOWN

EASTLAKE

NEIGHBORHOOD2500 Elliott

THE AMAZON EFFECTAs a result of Amazon’s presence in South Lake Union, the Belltown neighborhood is abuzz with Amazon employees as well as service businesses, and competing tech companies who have sought nearby addresses riding the wave of Amazon’s development and revitalization of the area. The appeal to potential employees of living in an urban setting, with access to transportation options, premier restaurants, entertainment and cultural attractions has become as important a recruiting tool as salary and other benefits.

Amazon is slated to lease or own 10 million square feet of downtown Seattle’s Class A office inventory.


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IV. MAPS & PHOTOS 2500 Elliott


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MAPS & PHOTOS 2500 Elliott


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V. TRANSACTION DETAILS 2500 Elliott

This ground lease offering of the property at 2500 Elliott Avenue is being distributed and marketed exclusively by CenturyPacific, LLLP to a select group of potential lessees. The prospective lessees will be selected by the Owners in their sole and absolute discretion based on a variety of factors including, but not limited to, offered rent, financial strength, performance history and ability to perform in a timely fashion.

CenturyPacific is available to assist prospective lessees with site tours and to answer questions related to the information contained in this Offering Memorandum. The offering, and the information contained herein, are confidential.

All inquiries should be directed to:

CenturyPacific, LLLP1201 Third Avenue, Suite 1680

Seattle, WA 98101

Michael Finch206-757-8895 direct

[email protected]


Seattle, WA 98101

16CenturyPacific


DISCLAIMER

Materials contained in this offering are furnished solely for the purpose of considering the ground lease of the 2500 Elliott Property (the “Property”) located in Seattle, Washington; described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of CenturyPacific, LLLP (the “Investment Team”) and the Sellers. The material is based, in part, upon information supplied by Seller and, in part, upon information obtained by the Investment Team from sources they deem to be reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather are outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is made by Seller, the Investment Team or any of their related entities as to the accuracy or completeness of the information contained herein. Prospective ground lessees should make their own investigations, projections and conclusions. Interested ground lessees should be aware that the Owner is leasing the Property in “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. It is expected that prospective ground lessees will conduct their own independent due diligence concerning the Property, including such engineering and environmental inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used on the Property. No representations, expressed or implied, are made as to the foregoing matters by Owner, the Investment Team or any of their officers, employees, affiliates and/or agent.

CenturyPacific, LLLP

2500 elliott - · pdf file2500 elliott avenue in seattle ... insurance company is available...

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