Hyatt Place hotel

June 02, 2008

Hyatt Place hotel/apartments coming up


By JOURNAL STAFF


Photo by Soundview Aerial Photography

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Crews from Malcolm Drilling Co. recently finished temporary shoring work to prepare the Hyatt Place hotel and apartment project for its foundation, which is now under construction along with lower-level parking garage walls.

Malcolm installed about 32,000 square feet of shoring, including 157 vertical elements and 716 soil nails. The subcontractor also attached horizontal tierods to the Marselle condo project across the alley to the east.

Graham Contracting is the general contractor for the $60 million hotel/apartment project being developed by Kauri Investments and Ariel Development at 600 Denny Way. When finished in the fall of 2009, the project will have 160 hotel rooms geared toward business travelers and 56 upscale apartments.

The hotel and apartment components will share a common wall, but will have separate entrances and elevators. Johnson Braund Design Group is the architect. Ground Support was the shoring designer.





Copyright@2008 Seattle Daily Journal and djc.com.
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Rainier Brewery

June 23, 2003

Rainier Brewery could become artist
space


By JOE NABBEFELD
Journal Real Estate Editor


Ariel Development would pay $6 million for the brewery and spend another
$2 million converting it to studios, galleries and live-work space.

Eight years ago, Herzel Hazan and Shimon Mizrahi began their
development careers together by creating four convenience store gas
stations in Seattle and a small retail outlet in Burien.

They’ve advanced to become partners with Silver Cloud Inns in
developing a future hotel next to Safeco Field and another on Broadway,
near Seattle University. The Safeco Silver Cloud will replace one of
their convenience store gas stations.

The 41- and 43-year-old developers also launched plans to replace their
station near Seattle Center with offices and condos, but that project
was put on ice after the dot-com bust.

Now they’re stepping up to buy the former Rainier Brewery in the Sodo
area for about $6 million. They’d spend another $2 million removing beer
brewing equipment and then fill it with low-rent artist studios and
possibly artist live-work units and galleries.

Tully’s Coffee would like stay, too, as a tenant in 80,000 to 100,000
square feet of the 240,000-square-foot, landmark on Airport Way, next
to Interstate 5.

“It was Herzel’s idea. It’s his vision,” said Mizrahi. “He has more of
his heart in art.”

The purchase from Benaroya Co. could come together in a few weeks.
“We’re close to closing,” Mizrahi said.

Some local real estate experts said they remain skeptical that Mizrahi
and Hazan, who work together as Ariel Development, will close on the
deal, though, because it’s hard to collect enough rent from artists to
make such a complex profitably.

“It’s certainly not a dumb idea. It’s a good idea … but I don’t know
if there are enough artists to fill it up,” said Art Wahl, a manager at
the CB Richard Ellis brokerage.

Since 1974, Wahl has been an owner of the Pioneer Square building that
houses F.X. McRory’s. He and his two partners evaluated turning the
space above the F.X. McRory’s restaurant into art studios many times but
never could make it work, he said. He has looked at doing the same in an
industrial structure near Georgetown and passed.

“When you get down to it, the artists have to pay rent,” Wahl said. “I
think it would be a great addition to the city, but I’m just skeptical.”

Stroh Brewing Co. transferred the brewing of Rainier Beer to Tumwater
in 1999 and sold the brewery and 15 acres of land on Airport Way to
Benaroya for $17.6 million. Benaroya sold 11 acres to Sound Transit for
a rail yard for a $24.3 million, giving Benaroya a hefty profit even if
it did nothing with the brewery building.

Benaroya leased the building to Tully’s and explored what to do with it
long-term. Last year, Benaroya drew up plans for converting the
structure into space for established artists and put it up for sale with
those plans for $7.5 million. No buyer emerged and the asking price has
dropped to $6.5 million.

Hazan and Mizrahi have altered the plan to offer cheaper, trimmed-down
space for less established artists. Mizrahi said they’re looking at
charging rents of $7 to $10 per square foot. Wahl, the skeptic, said
that could still be a bit high for artists.

“We’d have a lot of space” to offer, Mizrahi.

“You can create some really neat space in there,” said Tamir Ohayon, a
Puget Sound Properties broker who is representing Hazan and Mizrahi in
the deal. “It’s like a bunker in there.”

They’re looking at converting several huge tanks that rise about 30
feet off the ground on the brewery’s south side into studios. “Wouldn’t
that be cool?” Mizrahi said. Their plan also calls for installing
windows throughout the building.

The developers have been contacting artists and arts organizations
around the area to build momentum, much of that through consultant Conan
Gayle.

Mizrahi and Hazan both grew up in Israel but didn’t meet until each had
moved to Seattle 12 years ago.

Mizrahi, 43, spent two years in Los Angeles converting apartments into
condos before he moved to Seattle to do condo conversions here. Hazan,
41, started on the construction side.

“We became friends here and were always looking for something to do
together,” Mizrahi said. Their company, Ariel Development, is named
after one of Mizrahi’s two young sons.

Their first project was building the gas station north of Safeco Field,
at First Avenue and Royal Brougham Way, Mizrahi said. The station
includes a Tully’s, Taco Bell and a lot of groceries, so Mizrahi
described it as “more of a mini-mall” than a convenience store.

Their station at Denny Way and Aurora Avenue follows a similar format.

Ariel is a joint venture partner with Silver Cloud Inns to replace the
Safeco station with a high-rise Silver Cloud. That proposal is in for
permits. That deal with Silver Could led to the second joint venture to
develop the hotel that’s scheduled to open in October on Broadway.

Their architect on at least two of the stations, Broadway Silver Cloud
and the brewery is Ed Linardic’s LDG Architects.





Copyright@2003 Seattle Daily Journal and djc.com.
Comments? Questions? Contact us.

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GM Nameplate

March 04, 2011

GM Nameplate is buying back building, staying in Seattle


By MARC STILES
Journal Staff Reporter

City officials have been working with GM Nameplate to keep the largest manufacturer in town.

GM Nameplate President Brad Root said his company is buying back the manufacturing and office building in Interbay where it employs nearly 500 people.

Yesterday’s announcement signals that GM Nameplate, the city’s largest manufacturer, will stay in Seattle rather than move to the Kent Valley as had been expected. Root declined to discuss specifics until the deal closes later this month.

The 57-year-old company makes labels, keypads, touch screens and other products. According to its website, it’s an $80 million company with more than 800 employees in North American and Asia.

GM sold the nearly 114,400-square-foot building at 2040 15th Ave. W. for $10.5 million in 2006. It was part of a strategy to capitalize on rising land values in Interbay and move the company to less costly space in the suburbs.

All contingencies on the sale have been removed and the earnest money is non-refundable, said Tamir Ohayon, an NAI Puget Sound Properties principal who marketed the property.

The asking price for the building and an adjacent half-acre parking lot is $13.5 million, but GM is buying only the building. Ohayon and the seller, a limited liability company formed by Kauri Investments and Ariel Development, declined to say how much GM is paying for the two-story building.

We are absolutely thrilled that they have decided, after looking at all the options, that Seattle is the best place for them to do business,said Steve Johnson, Seattle’s director of economic development. “We worked long hours helping them evaluate all their different options… They even met directly with [Mayor Mike McGinn].

Seattle is providing no cash incentives for the company to stay, Johnson said, but officials pledged to streamline permitting should the need arise. City officials showed the company other potential sites and outlined tax credit and debt financing tools that GM Nameplate could use if it decided to build a new facility in Seattle.

In the end, they decided staying where they were was the best option, Johnson said.

When GM Nameplate began marketing the Interbay property eight years ago property values were rising, in part because the biotech company Amgen was building its research campus there,This property is worth an awful lot of money,Root said at the time.

TRF Pacific later built the 80,000-square-foot Interbay Urban Center, which is anchored by a Whole Foods. Martin Selig Real Estate built a three-acre office campus called 635 Elliott and 645 Elliott. Two other Seattle companies, Unico and the Freehold Group, last year announced projects that will bring 360 apartments to Interbay.

Kauri and Ariel bought the GM Nameplate property “because we felt like it was a well-located building in a path of progress, so to speak.said Kauri President and CEO Kent Angier. GM was paying very little rent,” he added, and the new owners planned to sub-divide the building and lease it to multiple users.

Angier said GM Nameplate officials decided last fall not to renew their lease. At the time, real estate observers anticipated the company would move to the Kent Valley, so Kauri/Ariel put the building and parking lot on the market.

About a month ago, GM Nameplate officials approached Kauri and Ariel about buying back the building, Angier said.

It’s unclear why the company changed its mind. GM Nameplate’s real estate representatives, Steve Brunette of Cushman & Wakefield Commerce and Ron Sudderth of Urban Commercial Properties, did not return calls.

Kauri and Ariel are not selling the parking lot next to GM Nameplate, Angier said. GM now uses it for overflow parking.We are deciding what do with the lot. There are a lot of possibilities,Angier said. It’s zoned for commercial uses up to four stories, and the owners can develop housing as a conditional use.

[Editor note: The original story has been updated to correct the height limit on the parking lot.]

The GM Nameplate building was built decades ago as a bowling alley. GM Nameplate moved there around 1970 and expanded it. Nearly half is office space and the rest is manufacturing.

GM also has a 25,000-square-foot industrial building at 2201 15th Ave





Copyright@2011 Seattle Daily Journal and djc.com.
Comments? Questions? Contact us.

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