May 7, 2007

Security Properties plans 37-story residential tower

Seattle-based Security Properties plans a 37-story, 310-unit residential building, likely with apartments, at Pine Street and Ninth Avenue, across from the Paramount Theatre, said John Marasco, managing director of development.

The company hopes to start construction in late 2008 or early 2009, he said.

“Current rents in the downtown market today may not support the cost of a building like this, but we believe in the very near future they will,” given declining vacancy putting upward pressure on rates, said Marasco.

Seattle-based Bumgardner Architects is designing the building, which will have 3,000 square feet of retail and about 320 parking stalls, above and below grade. No contractor has been selected.

As planned, the project will have primarily studio and one-bedroom units, but also two-bedroom apartments and perhaps a “handful” of upper level penthouse units, said Marasco.

Marasco said Seattle has few high rise apartment buildings, but is ready for more. He said the planned project is in one of the best locations in the city for housing as it's walking distance to retail and jobs, and is near transit and Interstate 5.

The planned project is in an area that is seeing an influx of housing. Houston-based Hanover Co. is building a 27-story, 224-unit upscale apartment complex at Eighth Avenue and Olive Way and R.C. Hedreen Co. is constructing the 39-story Olive 8 hotel/condo project, also at that intersection. Vancouver, B.C.,-based Executive Group and Fana Capital Corp. of Seattle plan the high rise Ava hotel/condo development at Eighth and Pine adjacent to the Camlin Hotel.

“It's an interesting little emerging neighborhood,” said Blaine Weber, a principal with Weber + Thompson, which is designing Ava. He said the new residents and hotel guests should fuel restaurants, art galleries and other retail. “I think you have a recipe for a fabulous, vibrant neighborhood.”

The Security Properties development site is under contract to be purchased from a trust of the Andonian family. Charles Andonian had operated the Pande Cameron rug store there, but was forced to move because of the loss of business and a tenant due to construction of a Sound Transit light rail line in the area, said his brother, Greg Andonian.

“There was no income from the property for some time,” he said.

As part of the purchase deal, Andonian said, the family razed the two-story building that housed the rug business. It put the site on the market about a year ago and “there was quite a lot of interest,” he said. Pande Cameron is now at 333 Westlake Ave N.

Founded in 1969, Security Properties acquires and develops apartments nationally. Most of its current activity is based on the West Coast, said Marasco. It has a portfolio of 25,000 units.

Locally, Security Properties developed the Epicenter in Fremont, a mixed-use project at the former site of the Red Door Alehouse. The project includes 130 apartments, a PCC market and other retail.