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Discussion Starter · #1 ·
'Pineapple express' bringing $70 million hotel to downtown Seattle
Marc Stiles
Puget Sound Business Journal

Pineapple Hospitality Co. President Michelle Barnet said Thursday that she plans to develop a hotel tower at Second Avenue and Virginia Street.

Early plans call for an approximately 200-room Hotel Clare, named for Barnet's mom, Diane Clare Foreman. The number of stories has not been finalized.

"We will probably be out of the ground in early 2016," Barnet said. The project will take around two years to build and cost around $70 million, including the value of the land, she added.

The announcement caps a busy month for Barnet. In addition to heading Pineapple Hospitality, she is president of a Bellevue company, Columbia West Properties, which she owns with her mom and her dad, Richard Foreman. In March, Columbia West sold the property across the street from the Hotel Clare site to Continental Properties, which is planning to build a 400-foot residential tower(subscriber content) there. The proceeds from that sale were put toward last week's acquisition of the Hotel California, an 83-room property in San Francisco. Barnet plans to expand the San Francisco hotel to 92 rooms.


To finance the Hotel Clare, Barnet will use the equity from the land that her grandfather, the late Joe Diamond of Diamond Parking fame, bought years ago. Today, some old buildings and a parking lot are on the property. Barnet has set aside some other equity for the project and will finance the rest with a loan from US Bank.

Barnet has hired Ankrom Moisan Architects and Seattle interior designer Andrea Dawson to design the Clare, which general contractor Exxel Pacific will build. Chris Burdett and Matthew Behrens of CBRE Hotels in Seattle are advising Barnet on the project.

As Barnet envisions it, the Hotel Clare will have a transparent elevator on the outside of the building. Guests will ride the elevator to the lobby at the top of the tower.

Barnet is a former hotel industry executive who joined Columbia West Properties several years ago. Columbia West owns land in downtown Seattle; an office building in the Bel-Red corridor on Seattle's Eastside; Waterworks Marina on Seattle's Lake Union; and six hotels in Seattle, Portland and San Francisco. Hotel Clare will be the company's largest.
 

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Um...no. It's at the corner of second and virginia...the parking structure you're taking about has already been redeveloped into Viktoria. And it doesn't have a 'twin' in the picture...
 

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I'm astounded that the original plan for upper condo floors above hotel platform wouldn't still make more sense. Just look at how tight the Belltown condo inventory is, and the price of view units at the neighboring high rises (Cristalla, 1521, One Pacific). Then consider the hotel renovation already going on across the intersection (NE corner of 2nd and Virginia), not to mention huge hotel projects like Hedreen up the street on Stewart/Pine. Then consider this is the highest point for the whole length of 2nd avenue, and no possibility of building higher anywhere to west of this, and the upper floor views for the tower are guaranteed to never become obstructed. How could you not see high potential for profit in that scenario?
 

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Sure, never is a long time. The half block to the west of this site is the historic Terminal Sales building, and blocks further west are in the lower height Pike market zoning, which seems unlikely to change while there's other parts of the city to build out.
 

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Discussion Starter · #11 ·
I agree. Seems like a missed opportunity but it's built out to 400 feet then I guess I don't care what the use is.
 

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200 hotel rooms won't take more than about 15-18 floors for that half block site. The hotel-only plan in the article doesn't sound like 400 ft. tower.

The zoning here is DMC 240/290-400. Correct me if I misunderstand, but the first number is commercial use height limit (240'). So, a hotel-only building would be limited to 240' and we only get a 400' tower with a mixed hotel/residential construction?
 

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200 hotel rooms won't take more than about 15-18 floors for that half block site. The hotel-only plan in the article doesn't sound like 400 ft. tower. The zoning here is DMC 240/290-400. Correct me if I misunderstand, but the first number is commercial use height limit (240'). So, a hotel-only building would be limited to 240' and we only get a 400' tower with a mixed hotel/residential construction?
Why wouldn't they add a residential component above the hotel, then?

What a damned waste. So frustrating.
 

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Here's a guess: last month, Columbia West sold the north tower lot to Continental Properties for $16 million. (http://www.bizjournals.com/seattle/...nt-site-near-pike-place-market-sells-for.html). CP plans to build the full 400' residential tower, the south facing units of which are worth a good bit more if the south tower is not fully built up. So, let's say CP was not willing to do the deal without CW agreeing to a lesser south tower, or maybe that last $1M paid the view easement? Meanwhile, CW gets immediate cash liquidity to do its SanFran hotel deal plus equity to start the south tower hotel at the sacrifice of the speculatively greater future profit on fully building out the residential part of the south tower.

Unintended beneficiary in this scenario: owner of the 2 level parking lot at SW corner of 3d and Virginia, which is zoned to allow 400' residential tower. With only historic Moore Theatre and a < 240' hotel at 2nd and Virginia to its west, that lot now gets good west facing Elliott Bay views on upper tower floors.
 

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I think another clue is in the $70 million figure. I don't think you can build a 40-story tower (including land costs) for $70 million in Seattle.
 

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I think another clue is in the $70 million figure. I don't think you can build a 40-story tower (including land costs) for $70 million in Seattle.
I don't think they're including land in the $70M, they already own the lot. Another benefit to Columbia West though is that at this price they may avoid seeking other outside financing that a full tower would require.
 

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From todays DJC.

http://www.djc.com/news/re/12064547.html

April 18, 2014

More hotels coming to downtown Seattle

By NAT LEVY
Journal Staff Reporter

Developers want to build two more hotels in downtown Seattle.

Permit records show a 300-room hotel is being planned at 924 Howell St. that would have parking, retail, restaurants and meeting rooms.

Talon Private Capital owns the land, which is a parking lot at the corner of Howell Street and Terry Avenue. Talon Managing Principal Bill Pollard said the company is under contract to sell the site to a developer, but he would not name the buyer.

While permit records show Talon is the owner of the site, an entity managed by Navin C. Dimond, president and CEO of Englewood, Colo.-based Stonebridge Cos., is listed as the applicant and financially responsible party. Stonebridge is a hotel developer and manager. Representatives from the firm did not return a phone call yesterday requesting comment.

Columbia West Properties and Pineapple Hospitality want to break ground in 2015 on a hotel at 1931 Second Ave. Columbia West's website says it will be called Hotel Clare but doesn't give other details or the number of rooms.

Columbia West recently sold a 19,440-square-foot site — also at Second and Virginia — to Continental Properties for $16 million. Representatives of Columbia West did not return a request for comments.

Weber Thompson is listed as the architect on the Howell Street project.

The hotel site is on a hot block, with an office building called 1800 Ninth that Talon bought, renovated and sold last year for $150 million, and Aspira, a 37-story apartment building that sold for $165 million in late 2012.

The site is not far from some other big hotel projects. One block east on Boren and Howell, Touchstone Corp. is building Hill7, which will have an 11-story office building and a 14-story hotel.

One block west, R.C. Hedreen Co. is planning a 40-story hotel at Ninth and Stewart.

All of these hotels could come in handy if the Washington State Convention Center moves forward with its expansion plans. The Convention Center recently paid $56.5 million for nearly 2 acres of land where it could build a $650 million expansion with 1 million square feet.

Stonebridge has tried to build a hotel in Seattle before. In June 2012 the company had a 13,000-square-foot parking lot at Fifth and Stewart under contract with plans for an 18-story hotel. The property went to auction last year after a long foreclosure process with the previous owner and Stonebridge was outbid by Stanford Hotels Corp.

In September 2012, AEW Capital Management of Boston and Stonebridge paid $60 million for a 28-story Hilton Seattle at 1301 Sixth Ave.

 

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Has this 924 Howell hotel project been discussed anywhere?

News to me.
News to me as well.

Meanwhile, in my records, I have both Second-Ave properties (on either side of Virginia) listed as "Justin properties." Can anyone clue me in as to where that might have come from and/or when it changed (if it did change -- I have to admit that I have trouble keeping track of the byzantine networks of owners, developers, etc., etc).
 
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