Home Finance Hearthstone Buys Undeveloped Land in Issaquah Highlands for $49MM

Hearthstone Buys Undeveloped Land in Issaquah Highlands for $49MM

Issaquah Highlands,
Location of where TDRs would be used | City of Issaquah

By Brittan Jenkins

Newport Beach, CA-based William Lyon Homes, which previously acquired Polygon Northwest, sold four parcels of undeveloped land in Issaquah Highlands to Irvine, CA-based Hearthstone for $49,604,014. Polygon had initially made plans for a residential housing development, Westridge, in the area and requested a major modification to add 100 additional units to their project.

King County public records list the assessed value for the properties at $7,892,100, $1,000 for two parcels and $4,474,0000, though the price paid for the land was substantially more.

William Lyon Homes’ website still lists the vacant property as the Westridge neighborhood, which it planned to develop. The group owns 11 residential developments across the Puget Sound and is planning to open another neighborhood, Upton at Crossroads Village in Bellevue, located at 15751 N.E. 15th St. The 7.75-acre, 350,000 square foot development will offer 176 units.

In the plans for Westridge, Polygon Northwest requested to transfer development rights to an Issaquah Highlands property, which was designated as a TDR receiving site in 2000. The request, proposed in June 2016, would allow Polygon to develop more units. Issaquah Highlands has had two other uses of TDRs since it became a receiving site.

The proposal asked to add 100 TDRs to Issaquah Highlands. The Issaquah Highlands also has a 30 percent affordable housing requirement, which has to be met. In order to do so, Polygon proposed developing 25 for-sale affordable housing units and one five-member group home on a city-owned parcel in the Issaquah Highlands.

All in all, the proposal would allow Polygon to raise the number of units in the Westridge project from 265 units to 365. In exchange for the increase in units, Polygon would have to preserve natural lands including decreasing development pressure on critical areas, increase opportunities for providing parks, promote design and development consistent with the city’s vision and allow the transfer of development rights, according to public records.

Public records show the 25 affordable housing units would be in a stacked flat configuration across four buildings, to limit the height and bulk of the buildings, so that they’re more consistent with the existing community.

Keith Niven, economic and development services director with City of Issaquah said, “Polygon is still going to be the builder but they have sold the property interest to a land trust. They will then work under contract to build the houses so they’re still involved just not the landowner.”