Overview

The Offering

Kidder Mathews is pleased to present the Belshaw Assemblage, one of the few remaining large mixed use development sites remaining in Seattle. Located just south of the incoming Judkins Park Light Rail Station on over 3 acres, the property provides a developer a unique opportunity to build over 580 units in four buildings on 16 parcels.

Seattle’s recent, unprecedented growth has caused national publications to award numerous honors to the area, including the #1 City in the US to find a job, the #1 fastest-growing big city, the #1 highest job growth for small business in the US, and the #1 most sustainable city in the country, among others. Seattle currently has an unemployment rate of 4.1% and shows no signs of slowing down as local corporate giants continue to grow, including Amazon, Boeing, Microsoft, Expedia, Nordstrom, and Starbucks, to name a few, while many other large employers move into the area, including Facebook, Google, and Apple.

This incredible growth has created a serious need for additional housing to the area. As more people flow into Seattle with high paying jobs in technology, life sciences, gaming, and more, apartment rents have grown at a steady rate. At the same time, many developers have gained control of the last remaining development sites in the area creating few other opportunities. The Belshaw Assemblage is a truly unique opportunity to develop a large scale project on a significant amount of land.

Located in the up and coming northern Rainier Valley neighborhood, the property witnesses high traffic counts to help with any retail brought to the project. Other neighboring submarkets are experiencing strong growth as new developments bring higher foot traffic and niche retail to the area. Given the incredible recent growth of the Puget Sound and the unique ability to acquire a large amount of land near the Seattle CBD, incoming light rail, large local medical and educational institutions, the stadium district and local sport scene, this property provides a very rare opportunity to develop into what promises to be one of the strongest markets in the country.

Offering Process
This property offers an exclusive opportunity to acquire three city blocks ready for development in the fastest growing city in the country. This property is being marketed without an asking price and a call for offers deadline will be announced.


Property Overview

Offering
Belshaw Assemblage
Three Full City Block Development Opportunity

Address
Rainier Ave & State St (NW Boundary)
Rainier Ave & S Holgate St (SW Boundary)
23rd Ave S & S Grand St (E Boundary)
23rd Ave S & S Holgate St (SE Boundary)

King County Tax Parcel Numbers
1822300005; 7548301095; 7548301100; 7548301150; 7548301115; 7548301120; 7548301125; 1822300025; 1822300020; 1822300175; 1822300180; 0924049007; 3881900515; 3881900540; 3881900550; 3881900560

Property Size
± 139,417 SF | 3.20 Acres

Frontage
Approximately 470 lineal feet on Rainier Ave S & approximately 406 lineal feet on 23rd Ave S

Locality
City of Seattle

Zone
C1-65’


Property Details

The Belshaw Assemblage consists of 16 parcels of land on three city blocks, located two blocks south of Interstate 90 and the incoming Judkins Park Light Rail Station between Rainier Ave S and 23rd Ave S in the Northern Rainier Valley submarket of Southeast Seattle. The total area of the site is 139,417 SF or 3.2 acres.

Fifteen of the 16 parcels are zoned C1-65’, a general commercial zoning classification which allows almost any use, including retail, restaurants, office, service, residential, hotels, institutional, manufacturing and warehousing. Buildings may cover 100% of the parcel footprint, with heights of up to 65 feet, which is sufficient for a ground floor of commercial uses with five stories of apartments or office above. The land use code allows a Floor Area Ratio of 4.75, which would allow a gross building area of the combined sites of over 660,000 SF.

Spanning three city blocks, the property has several public streets intersecting the entirety of the site. S Grand St travels east to west connecting Rainier Ave S and 23rd Ave S while splitting the two northern blocks with the one southern block. Between the two northern blocks is a smaller city street, 22nd Ave S, which travels north to south, connecting S Grand St to the south and S State St to the north.

Highlights

  • Ability to phase project in four buildings on 16 parcels
  • One of few remaining developable city blocks in one of the hottest apartment markets in the country
  • Close proximity to future light rail station connecting Seattle and Bellevue
  • High traffic counts support retail growth
  • Strong rental market in the #1 fastest-growing big city in the country
  • Located within blocks of both Interstates I-90 and I-5
  • Surrounded by fast developing submarkets, including Beacon Hill, Columbia City, Capitol Hill
  • Minutes to Seattle’s central business district
  • For more information, please login to the due diligence section

Zoning Summary

Zone
C1-65’

Permitted Uses
Retail, office, apartments

Height Limit
65’

Maximum Density / FAR
Residential-only or nonresidential-only - 4.25
Mix of residential & nonresidential - 4.75
Underground space not counted toward FAR

Setbacks
Required for lots abutting or across the alley from residential zone

Amenity Area
5% of gross floor area in residential use

Urban Center
North Rainier Urban Village

Parking
No parking is required for non-residential and residential uses in certain urban villages

Bike Parking
For residential use, 1 bike parking stall per 4 dwelling units is required
For commercial use, 1 stall per 4,000 SF

Development Plans Created By

Development Options

Aerial View
Street View
Landscape
Sections
Landscape Plan
Areas & Unit Matrix

Location

Overview

Belshaw Assemblage is a fast-growing submarket right in the center of Seattle bordering the Capitol Hill, First Hill, and Central District neighborhoods. The three neighborhoods are densely packed with residents, small businesses, and medical and educational institutions. These neighborhoods’ proximity to all of the major access routes and business districts in the Puget Sound are key factors in attracting business, visitors, and residents. The Belshaw Assemblage is ideally located in Seattle with quick access to the entire area, including:

  • 3.0 miles – 5 minute drive to Mercer Island
  • 3.7 miles – 8 minute drive to South Lake Union and the rapidly expanding Amazon campus
  • 4.9 miles – 15 minute drive to the University of Washington
  • 2.3 miles – 9 minute drive to the Stadium District
  • 8.5 miles – 14 minute drive to downtown Bellevue
  • 14.3 miles – 16 minute drive to Seatac International Airport
  • 50.6 miles – 51 minute drive to skiing at the Summit at Snoqualmie
  • 115 miles – 3 hour 35 minute commute to San Juan Island

Amenities Map

Traffic Count

Proximity to Seattle CBD

2 Miles

Three city blocks just south of I-90 and incoming light rail station on heavily trafficked north-south arterial.

Seattle’s Public Transit

Since the 1990s, Seattle has invested billions of dollars in the creation of, and improvements to, its public transit options. After many years in the making, the Seattle CBD is now connected via light rail to the airport, and current development on stations from Northgate through the University District into Capitol Hill will connect even more of the area to light rail. Further, by 2021 much of the Eastside will be connected to the same line.

The Seattle Streetcar will be another major benefit for passengers, connecting all of Capitol Hill with First Hill, the International District, and Pioneer Square.

Judkins Park Station

Located in the center of I-90, riders will be able to enter the station from Rainier Ave S and 23rd Ave S. The Judkins Park Station will have a centerplatform located in the center roadway of I-90 with bicycle and pedestrian connections to the I-90 trail as well as bus connection at the east and west entrances. Sound Transit expects the light rail to open in 2023.

Market Area

Puget Sound Overall Market

Seattle is a world-class city, boasting the nation's fourth-largest export market and some of the world's top aerospace, life science, and technology companies. Seattle has become a choice destination for international tourists who are valuable contributors to the local economy. Now with an unemployment rate near 4.1% and a strong, and growing, level of household income, Seattle is becoming a major player on the world market.

The strong local economy coincides with a vibrant educational environment; in fact, 59% of Seattle residents have earned college degree or above, compared to 30% nationally. Seattle is often ranked as one of the most educated and most literate cities in the US. The area boasts one of the perennial top universities nationally in the University of Washington, and two large, highly reputable private universities in Seattle University and Seattle Pacific University. Also coming to the area is one of the region’s first multinational universities, the Global Innovation Exchange, which is a partnership of the University of Washington, Microsoft, and China’s Tsinghua University.

The level of higher education throughout the region has led to a highly talented workforce in numerous sectors. Seattle is an established leader in immunotherapy, with anchors that include Juno Therapeutics, Fred Hutchinson Cancer Research Center, and the globally ranked University of Washington. The Gates Foundation and PATH have led the charge on global health, making it one of our region's key intellectual global exports.

The technology sector in Seattle is also one of the strongest and fastest growing in the world. Industry leaders, Amazon, Expedia and Microsoft have long called the Seattle area home, which has attracted numerous additional tech companies drafting off of the wealth of talented employees throughout the area. According to Glassdoor, Seattle is now the No. 1 best paying city for software engineers based on a “real adjusted salary”. With over 4,200 current job openings for software engineers, twice that of San Jose and almost as much as San Jose and San Francisco combined, the influx of tech employees shows no sign of slowing, especially considering Amazon’s larger growth and the anticipation of up to 70,000 Amazon employees (or more) in the Seattle core by 2022.

With the number of large scale employers and economic growth coming to the area, the local office development market has also shown a significant surge. The Seattle-Bellevue office market is expected to deliver 6.5 million square feet of office space in the next 18 months. Major recent absorption of recent deliveries and a tightening amount of availability speaks to the economic growth of the area as more large employers expand their presence in this area.

Regarding the development landscape, the cranes on Seattle's skyline show a booming development market. In fact, the crane count increased 43% from the summer of 2015 to January 2016. Between 2011 and 2015 the value of both multifamily and industrial construction projects increased approximately 500%, and in 2015 the total value of 2,230 commercial construction projects exceeded $2 billion.

Of the 65 cranes under construction on buildings in the Seattle core area, 2/3rds are for housing with more than 20,000 units scheduled for completion after 2017. Currently, over 70,000 people live downtown, an increase of 18% since 2010, and many continue to move to the core and neighboring areas. Much of the reason for this centralization of the housing force is based on the movement over the last two years of large employers to Seattle’s downtown, and close neighboring submarkets, including Weyerhaeuser, Amazon, Facebook, and Expedia.

Seattle’s apartment market now has the fastest growing rental rates in the nation, with year-to-date rental rates at over 10 percent. These rates have grown at four times the national average, suggesting a tight market amidst the rapid expansion and development. With this growth in rent is a growth in Seattle’s expected population. Just two years ago U.S. Census data showed Seattle was the nation’s fastest-growing city, and is further expected to increase 38% by 2040.

Jay Denton, senior vice president of analytics for Axiometrics, recently said in a press release, “Seattle’s performance is still in the top three among major markets. Job growth is generating a robust demand, supply is manageable and occupancy is high. That’s a winning formula for apartment owners and investors.”

Major Regional Employers

Microsoft, Boeing, and now Amazon, have historically dominated the Puget Sound’s office markets. An emerging trend in this area, however, has been the growth of startup technology and life science companies, thanks largely to a highly educated employee base.

The University of Washington, Seattle University, and young employee alumni of Microsoft and Amazon have amplified the entrepreneurial mindset in the area.

Further, the world’s best capitalized non-profit, Bill and Melinda Gates Foundation, is located in Seattle with a commitment to entrepreneurialism, expanded educational opportunities, and access to information technology. Other large office tenants in the area include:


Seattle named 3rd Smartest City in North America by Fast Company

6th Best City in the U.S. for Business Careers by Forbes

5th Best City in the Nation to find a Job by Glassdoor

Development Pipeline - Localized

Development Pipeline

Due Diligence

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