April 5, 2018

4.5 acres at Yesler Terrace site are for sale; high rises are OK

Image by Mark Griffith [enlarge]

Office space, housing and a hotel could be built there. Zoning will allow buildings up to 300 feet on much of the property.

Seattle Housing Authority is offering to sell 4.48 acres at Yesler Terrace on First Hill, overlooking downtown Seattle.

The property, called Yesler Terrace North, is four parcels bordered by Yesler Way, Alder Street and Broadway, with Ninth Avenue running between them.

Offices, housing (including age-restricted) and a hotel could be developed there. Zoning would allow buildings up to 300 feet on much of the property.

The parcels are:

• 1.14 acres east of Interstate 5 and north of Yesler Way

• 0.62 acres at the southwest corner of Alder and Broadway

• 1.53 acres at the southwest corner of Alder and Ninth

• 1.19 acres at the southeast corner of Alder and Ninth

Frank Bosl is an executive vice president with CBRE, the listing agent. He said SHA prefers high-rise commercial on the latter two parcels, but is open to other proposals.

Offers may be submitted on individual or collective parcels.

Bosl said the property is being marketed to domestic and international developers, and has received significant interest. Offers will likely be due in May, he said.

“There aren't any other sites of this scale” this close in, said Bosl. Seattle's geography, terrain and established neighborhoods tend to prevent institutions, corporations or developers from amassing large properties.

The 30-acre Yesler Terrace was developed by Seattle Housing Authority in the early 1940s as the city's first publicly subsidized housing community. It is undergoing a multi-party redevelopment, which SHA has said could eventually include as many as 5,000 housing units, up to 900,000 square feet of office space, and up to 88,000 square feet of retail, along with parks, open space and neighborhood services.

The housing authority pegs the redevelopment value at $1.7 billion.

New apartments, but no high-rises, have been built in the community, which CBRE said offers sweeping views of Mount Rainier, Elliott Bay and downtown.

CBRE notes Yesler Terrace North is near medical centers, Seattle University and the central business district, and Amazon.com is a few miles away. The area is served by a streetcar line, which connects to light rail.

SHA previously offered to sell Yesler Terrace North through a different broker. There was some interest but no takers.

Kerry J. Coughlin, SHA director of communications, said on Wednesday that the earlier offering was before development of market-rate apartments in Yesler Terrace was this far along. Private companies, including Vulcan Real Estate, Mill Creek Residential Trust and Lowe Enterprises Real Estate Group, are developing them.

Coughlin also said the land was offered before the streetcar line opened, and a hill-climb and central park had become a reality. The park is expected to open this summer.

She said Yesler Terrace North has become more attractive for non-residential development. “People are really beginning to see the vibrancy of the community.”

The CBRE contacts are Bosl (multifamily) Tom Pehl (office) and Matthew Behrens (hotel).

GGLO created development feasibility scenarios for the property.