Home Commercial In $111.6MM Transaction, Stonebridge Adds Equity Partner in Seattle’s Residence Inn

In $111.6MM Transaction, Stonebridge Adds Equity Partner in Seattle’s Residence Inn

Stonebridge Companies, Denver, Marriott, Washington Convention Center, South Lake Union, Amazon, Mortensen Construction, Seattle, Weber Thompson

By Vladimir Bosanac

Roughly one year ago, Denver, CO-based Stonebridge Companies had opened its brand new Residence Inn by Marriott hotel in Seattle’s downtown core next to the new Washington Convention Center and close to the bustling South Lake Union neighborhood where Amazon has made its home. In a transaction worth $111.6 million, or close to $370,000 per room, according to public records filed with the county, an entity associated with the developer sold and another one purchased the 302-room property on December 21, 2018. Both entities are affiliated with Stonebridge, indicating that the new company is likely adding an equity partner to the development.

Developed by Denver’s Stonebridge Companies, the Residence Inn by Marriott was completed in fall of 2017, and it signaled the start of what the developer and its builder Mortensen Construction called a “historic hotel boom in Seattle.” The hotel was at the time considered the second-largest in Seattle’s three-year hotel pipeline, a period that was projected to see more than 5,000 new rooms come online, according to data from the Downtown Seattle Association (DSA). By comparison, the DSA counted just 2,700 rooms added from 2005 through 2016. Seattle is often cited with one of the highest occupancy rates in the nation – more than 93 percent of all downtown Seattle hotel rooms are occupied on a given evening – according to a statement from the developer.

The project team included architecture firm Weber Thompson, Denver-based interior design company Design Force, Johnson Braund and DCI Engineers. The mechanical, electrical and plumbing design-build team is composed of Valley Electric (electrical, fire alarm and low-voltage systems) and Auburn Mechanical (HVAC, plumbing, controls).

Located near the Denny Triangle submarket of South Lake Union at 1815 Terry Ave., Residence Inn by Marriott Seattle Downtown/Convention Center is within a 5-minute walk of popular attractions such as Seattle Paramount Theatre and Cornish College of the Arts, according to travel web site Orbitz. This 302-room, 3-star hotel welcomes guests with conveniences like free in-room WiFi, a fitness center and a 24-hour business center. Centrally located in Seattle, the hotel is also a short walk from Pacific Place and Westlake Center.

The hotel is in close proximity to the another newly constructed hotel that opened just a couple of weeks ago. The full-service, LMN Architects-designed, 1,200 room Hyatt Regency Seattle is the largest hotel in the Pacific Northwest, and it is also located in proximity to the Washington Convention Center at 808 Howell Street.

Earlier, in November of this year, Mortensen announced that it was building a Gensler-designed, first of its kind, citizenM modular hotel that will feature 264 rooms in the heart of the city’s South Lake Union neighborhood. This project is located at 201 Westlake Avenue N