By Meghan Hall
As the commercial real estate industry has taken off, investors are continuing to look for creative ways to leverage their properties. In recent years, ground leases have become increasingly popular, often allowing development to occur. In another such deal, public records indicate that iStar and Prospect Ridge have executed a ground lease for a Redmond hotel asset. Records indicate that the transaction came to about $28.5 million.
The property is located at 7401 164th Ave. NE; it is currently developed with the Washington Hotel, also known as the Seattle Marriott Redmond. In all, the hotel rises three stories and totals 262 rooms. Amenities include a fitness center, seasonal outdoor pool and 8,500 square feet of meeting and event space. King County Assessor’s data shows that the hotel was originally built in 2003.
“Indulge yourself with a visit to our newly remodeled hotel nestled in the heart of downtown Redmond, Washington at Seattle Marriott Redmond,” the hotel’s landing page states. “Our ideal location makes it easy for guests to walk to the 640-acre Marymoor Park as well as the shops, restaurants and concerts at Redmond Town Center. We are also within a close distance of local wineries, the Microsoft Campus and Overlake Christian Church.”
The hotel sits within the Redmond Town Center. Built in 2006, the center totals 693,627 square feet of space and features tenants such as Bed, Bath and Beyond, 24 Hour Fitness, IPIC and Petco. It is unclear what Prospect Ridge’s plans are for the site; the City of Redmond listed no pending applications for the property.
Prospect Ridge, based in New York, prioritizes investments with limited risk and “deep value,” according to its website. The firm also targets distressed or illiquid assets and strives to remain agnostic to “geography, sector, investment vintage, deal size, operating partner or counterparties.” The company’s portfolio spans across the country and includes assets in Pasadena, Calif., Seattle, Phoenix, Boise, Idaho, and others.
As of this writing, neither iStar nor Prospect Ridge have returned The Registry’s request for comment.