By Meghan Hall
A development site on the border of Seattle’s rapidly growing Wallingford and Fremont neighborhoods is on the market. With entitlements currently in progress, Seattle-based Colpitts Development Company, is looking to sell the site off to a developer interested in obtaining one of the few remaining institutionally-sized properties in the submarket. According to Ross Klinger, executive vice president at Kidder Mathews, guidance pricing for the property is about $14 million.
“The property is a great, vibrant site,” said Klinger. “It’s a standout, if you will.”
According to project documents, the quick development of the neighborhood at the beginning of the 19th century has produced the majority of its buildings, which exude a pre-World War II character. These buildings are of a more modest scale. While residential development is largely single-family, commercial structures are usually single-story masonry construction. Newcomers to the neighborhood have encouraged another round of development, one that is changing the face of the neighborhood moving ahead, including the proposed Union View project.
“This mixed-use multi-family residential building is designed as a microcosm of Wallingford’s urban village, enhancing the neighborhood fabric in order to foster commercial enterprise and bolster residential accommodation, with respect to principles of accessibility, equity, civic engagement, health, safety and prosperity for its community,” design documents state.
Currently, the project site, located at 3831 and 3839 Stone Way N., is developed with two single-story buildings. The proposed project, designed by Veer Architecture, will rise seven stories in height and include 140 residential units. Amenities will include a pet spa and bike shop, as well as 2,200 square feet of commercial space. Project plans will also include 70 parking stalls. The project is in the early phases of design review and has begun the Master Use Permit application process, but has yet to be fully entitled.
The project site is also within close proximity to a number of Fremont’s biggest employers: Adobe, BrooksHQ, Tableau Software, Google, Getty Images and AdReady, among others.
According to Klinger, fundamentals for multifamily in the area are strong. As construction and permitting slows due to coronavirus, multifamily fundamentals will likely be bolstered even further as the region’s employment holds steady, providing plenty of opportunity for investors.
“If you look at the long-term outlook for residential in Seattle, I think it is very good,” said Klinger. “Any development project has to be entitled and built and stabilized, and so that takes a long time. If you have a long-term outlook of Seattle being a place that people want to live, I would bet on it.”
As of the second quarter of 2020, there were 24,209 units under construction, and 1,913 units that started construction. During the second quarter, the region also recorded 994 units of net absorption. Overall, there are more than 336,000 apartment units in the Puget Sound, up from nearly 270,000 in 2013.
According to a recent evaluation of the multifamily market by Kidder Mathews’ multifamily team, recent land development sale highlights include 2912 Beacon Ave. S., a 66-unit project site which sold for $4 million. 4035 Stone Way N., not far from the Union View project site, sold for $5.14 million and is entitled for 48 units.
The property, stated Klinger, has had a lot of interest. The sellers are planning to put out a call for offers in about two weeks’ time to gauge potential buyers’ interest in the site.