March 22, 2018

Plus sells majority stake in Elev8 to Stanford Hotels for $128M

Rendering by MZA Architecture [enlarge]

Bellevue approved an upzone last fall. The Elev8 site could now have towers up to 600 feet tall.

[enlarge]

Stanford Hotels said it is evaluating all options for Elev8, but said the complex will include office, housing and hospitality uses.

Plus Investment USA has sold a majority stake in its planned four-tower Elev8 project, at 10833 N.E. Eighth St. in Bellevue, for $128 million.

The buyer was Stanford Hotels of San Francisco. Both parties used LLCs.

King County recorded the two related sales of three parcels on Wednesday. Both companies then issued a press release.

The companies said that Stanford now has an unspecified “controlling interest” in the project.

Brokers, if any, were not announced.

Plus had spent $76 million in 2014 and 2015 to assemble a 4.6-acre site south of Eighth and between 108th and 110th Avenues Northeast. It is walkable to Bellevue Square, Lincoln Square and the station where light rail service will begin in 2023.

Originally called Bellevue International Plaza, Elev8 hasn't broken ground yet. The mixed-use project was first announced to have two phases. The first received a determination of non-significance from the city of Bellevue last summer. The second phase has not yet been submitted for permitting.

In the meantime, the city approved its long-awaited upzone last fall. The Elev8 site could now have towers up to 600 feet tall.

For that reason, the press release said, “Stanford Hotels is evaluating all options for Elev8. The development teams plan to create a well-balanced program for the space. Elements will include office, residential, and hospitality uses and will enliven downtown living, enhance foot traffic for local businesses and support events and conventions.”

• Phase I will be on the east side, along 110th, with two 40-story residential towers. One will have 350 condominiums, and the other will have 423 apartments, according to Polaris Pacific, which is marketing the condos. The two towers will share a large retail podium, and there will be 1,698 parking stalls below grade.

• Phase II will be on the west side, along 108th, on the former First Congregational Church site. It was originally announced to have a 300-foot-tall office tower and a 450-foot-tall residential tower. A podium with retail and commercial space was also planned, along with underground parking. But the new zoning will likely change that plan.

The entire Elev8 project was designed by MZA Architecture and Adamson Associates Architects. PCL Construction was announced two years ago as the general contractor. Again, those team members may change — as well as the project's name.

Plus had owned most, but not all of the block. To the south is the 3.5-acre Bellevue 600 redevelopment project, which is owned by Equity Commonwealth and being developed by Touchstone. It will have a hotel tower and an office tower.

Bellevue-based Plus is related to the Chinese developer of the same name. Last fall it sold a planned 65-unit apartment project in Uptown for $6 million. It is planning 110 units at 1170 Republican St. in South Lake Union, though that project is still in the permitting stages.

The total project size for both phases of Elev8 was projected to exceed 3 million square feet, but that was the old plan.

Real Retail is leasing the retail space.

In Seattle, privately held Stanford is planning a 57-story hotel at 1903 Fifth Ave. In South Lake Union, it has permits for the 15-story, 283-room Marriott SLU at 300 Terry Ave. N., next to the Brave Horse Tavern, and has announced it will act as its own general contractor for that.

Stanford was founded in 1985 by Lawrence Lui, who also runs Cresleigh Homes. Lui is a son of Hong Kong billionaire Lui Che-woo, whose holdings include Galaxy Entertainment (a major casino and hotel developer in Macau), K. Wah Group (a large property and resort developer and builder, among other interests) and Stanford Hotels International.

Stanford owns and operates its properties for Hilton, Marriott and Sheraton.