6th and Blanchard (Via6)

[SJM]

So is insignia still on hiatus? That project would be a real gem.

[meku]

http://seattletimes.nwsource.com/htm..._lenora20.html


Hot market for rentals inspires twin towers

Seattle developer Pine Street Group plans to break ground within days on a high-rise apartment complex in the Denny Triangle that would be the biggest new downtown construction project in 3 ½ years.

By Eric Pryne

Seattle Times business reporter

Seattle developer Pine Street Group plans to break ground within days on a high-rise apartment complex in the Denny Triangle that would be the biggest new downtown construction project in 3 ½ years.

The two-tower, 24-story Sixth & Lenora Apartments is the latest — and largest — entrant in what has become a race among developers to meet growing demand for in-city rental housing that they expect won't abate soon.

At 654 units, the project would be the city's second-largest market-rate apartment complex, said Mike Scott of research firm Dupre + Scott Apartment Advisors.

Matt Griffin, Pine Street's managing partner, said the apartments will target young people who work for such nearby employers as Amazon.com and the Gates Foundation — "people who want to walk to work. We truly believe this is a place people could live without owning a car."

The project, on a mostly vacant, half-block site on Sixth Avenue between Lenora and Blanchard streets, also would have 18,000 square feet of ground-floor retail space.

Pine Street's complex is a strong vote of confidence in the city's booming apartment market, Scott said.

"A year ago, things were improving, but there still was a lot of concern on the part of investors," he said. "That's dissipated. This [project] is proof of that."

Griffin said his firm and its development partners, pension-fund investors represented by real-estate investment adviser Bentall Kennedy, won't borrow money for the $200 million complex: They'll build it entirely with their funds.

Developers have been rushing in recent months to get new apartment buildings permitted and under construction. The apartment-vacancy rate has dropped while rents have begun increasing, according to Dupre + Scott and other researchers. They also say more consumers are reluctant to buy as home prices continue to drop.

Yet, while apartment demand is rising, supply isn't: A lull in construction during the recession's depths means relatively few new units will be finished this year.

Research firm Apartment Insights Washington anticipates 1,866 units will be delivered in 2011 in King and Snohomish counties, less than one-third as many as in 2009.

Hence the recent development boom. But, while many projects are in the pipeline, Sixth & Lenora would be just the second high-rise to break ground since the rush began.

Pine Street obtained permits to start building two years ago but held off while the economy was soft. Now, however, "we're all starting to see recovery," Griffin said.

Job growth is up, he said, and many younger workers are turning to apartments because they recognize owning a home could interfere with their ability to go where the jobs are.

He said Sixth & Lenora should appeal to them in part because it's in a walkable neighborhood blocks from Westlake Center, downtown's prime transit hub.

Relatively low construction costs also make this a good time to build, he said.

Apartments in the towers, mostly studios and one-bedrooms, will average about 700 square feet. The project isn't scheduled for completion until February 2013, Griffin said, but the units probably would rent for an average of about $1,900 a month in today's market.

Before Sixth & Lenora, the last building project of similar magnitude in greater downtown was Aspira, a 37-story apartment tower at Terry Avenue and Stewart Street that broke ground in November 2007, according to Bryan Stevens of the city's Department of Planning and Development.

Pine Street Group probably is best-known as the developer of Pacific Place, the downtown retail-entertainment complex built in the late 1990s. The firm has focused its development efforts exclusively on the downtown area.

"We often say that if we can't walk to it, it's probably something we can't understand," Griffin said.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com

[CrazyAboutCities]

That new rendering reminds me of Bellevue's Washington Square.

[SteveM]

I can't say I'm totally shocked given the construction costs of high-rises, but $1900/month for a studio or one bedroom apartment seems like a lot. I could see that Amazonians could bring the demand and the cash, though.

[CityView Jim]

Vulcan is missing an opportunity to build rentals in SLU.

So if this project is the 2nd largest apartment complex, what's the largest? Harbor Steps?

[pwalker]

As I understand it, $1900 will be the average rent. So, a studio would probably be significantly less, and 2 or 3 BR would be more.

Still, high rent compared to western cities that are not coastal. Denver, Salt Lake, Phoenix, Las Vegas are well below that 1900 average.

[SteveM]

Originally Posted by pwalker

As I understand it, $1900 will be the average rent. So, a studio would probably be significantly less, and 2 or 3 BR would be more.

Yeah, but if I read it correctly, most units are studios or 1-bedrooms, so an average rent probably applies at least to a 1-bedroom. Though if the average unit is 700 square feet, those are large 1-bedrooms.

Hey, if they can make it work, more power to them. It's interesting that they're self-financing.

On Vulcan rentals in SLU: I wonder if they're banking land waiting for the rezone to play out or if they just can't make residential development pencil right now. I think it's kind of too bad that most residential development in SLU has come in the Cascade (east of Fairview), while the commercial has clustered around Westlake. I know that's partially an issue of the zoning, but it still seems like a waste -- a better mix would make better use of the SLUT and could make for a better 18-hour neighborhood mix. All that's off-topic for 6th and Blanchard, though.

[jessejb]

I'm really glad this location is getting developed. It's one of the more glaring dead zones in the Regrade and will put plenty of eyes on the street where its needed.

Also might be a good boost for the King Cat Theater (whatever that is) and Top Pot!

[alexjonlin]

I don't think it seems like Washington Square. The biggest difference is that this is designed to promote street life, with lots of sidewalk-oriented retail. That's what I don't like about Bellevue, is that outside of a couple places there's no street life and all the retail is oriented inwards, for people coming up the elevators from the parking garage.

[Ruffhauser]

Update

image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr

[geoffloftus]

I went by this morning and there seems to be serious work going on there.

[Rogue Linguist]

Originally Posted by zappa

I'm staggered by the beauty and architectural detail! The setbacks! The curves! The modulated and angled roofline! The thin and elegant profile on the skyline!
It's almost as gorgeous as the rendering of 'The Martin'!

It's almost as mesmerizing as one of those cold, sterile Vancouver False Creek megaliths. Oh, well. At least it's inner-city density.

[Rogue Linguist]

Originally Posted by alexjonlin

I don't think it seems like Washington Square. The biggest difference is that this is designed to promote street life, with lots of sidewalk-oriented retail. That's what I don't like about Bellevue, is that outside of a couple places there's no street life and all the retail is oriented inwards, for people coming up the elevators from the parking garage.

Amen to that, sister! Although I will say that retail should be concentrated on three or four streets in North Downtown (say, First Avenue and Fifth going north to south, and Bell and maybe Virginia going east to west). Otherwise retail gets too scattered and you lack the concentrated foot traffic that creates lively thoroughfares.

[Rogue Linguist]

Originally Posted by Ruffhauser

Update

image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr


image hosted on flickr

How were the '60s EVER allowed to happen? I can't believe a major west coast city still looks like this in 2011. It's a horror. Oh, well. At least it's changing.

[mSeattle]

^ Answer: The Axis of Oil

[Vashon118]

Demolition has begun on the building on the south end of the lot.

[Capitol Hill]

Originally Posted by Rogue Linguist

How were the '60s EVER allowed to happen? I can't believe a major west coast city still looks like this in 2011. It's a horror. Oh, well. At least it's changing.

Never underestimate the power of LSD.

[Ruffhauser]

image hosted on flickr


image hosted on flickr


image hosted on flickr

[Vashon118]

06/09:

[mSeattle]

Hmmm, Seattle could be making noise again. If only the Nickels-era condo-conversions hadn't been allowed... we'd already have been at this stage for a couple of years and building bigger.