December 20, 2017

Holland, NASH sell Westlake Steps apartment complexes for $324M

Renderings by Weber Thompson [enlarge]

1207 Westlake

[enlarge]

1287 Westlake Ave. N.

Holland Partner Group and its financial partner NASH have sold both apartment complexes at Westlake Steps for $324 million, according to King County records.

Two LLCs associated with Holland and NASH sold properties at 1207 Westlake Ave. N., 1287 Westlake and 1414 Dexter Ave. N. in two related transactions worth $169.6 million and $154.6 million.

The buyers were BPP Holland One Lakefront LLC and BPP Holland Marina SLU LLC. Both are related to Blackstone Property Partners, and are registered in Delaware as foreign LLCs.

They also list Holland's mailing address in Vancouver, Washington as the taxpayer address. That may mean that Holland remains a partner in the new ownership group, or that it will continue to manage the properties through Holland Residential, or both.

Holland didn't immediately clarify the deal in response to DJC queries, and Blackstone declined to comment.

Brokers were not announced. Public records indicate that Holliday Fenoglio Fowler helped secure financing, with Freddie Mac supplying two loans worth $195 million.

The 5.5-acre Westlake Steps site is bounded by Dexter, Westlake and Highland and Galer streets. Holland and NASH acquired the site in 2013 from Blackstone and its affiliate Equity Office Properties for almost $80 million. Work on the project began in 2015.

NASH, or North America Sekisui House, is the U.S. subsidiary of Japanese builder and developer Sekisui House.

The two office properties at Westlake Steps were previously sold in 2015. Invesco Real Estate bought the new office building at 1101 Westlake for $67.4 million. It is now fully leased to Facebook. Pemco bought the former Casey Family Programs building at 1300 Dexter for almost $31.6 million. Pemco now occupies that building.

The history of Westlake Steps goes back to 2005, when CarrAmerica Realty Corp., which later became a Blackstone affiliate, paid $52 million for the property.

The six-story apartment buildings that sold are marketed as Marina SLU and One Lakefront. They have about 704 units and about 750 parking spaces, as well as retail. Holland was the general contractor, and Weber Thompson was the architect. Vacancy rates for the apartments are unknown.

Blackstone continues to be an active buyer and seller in this region. In September, a Blackstone-related LLC bought the Exchange Building in downtown Seattle for $156 million.

Holland is currently planning or constructing several projects: 85 units at 1101 Westlake in South Lake Union; a 440-foot tower at 2019 Boren Ave. in the Denny Triangle; a 40-story tower with 468 units at 970 Denny Way; and a 251-unit redevelopment of the Safeway on Upper Queen Anne.