October 25, 2022

Charter Hotel sold to Utah investors

Photo by HC Architecture [enlarge]

The Charter Hotel is 16 stories with 229 rooms.

The Charter Hotel, at 1610 Second Ave., recently changed hands, according to King County records. The seller was RB WW Seattle LLC, an entity of original developer Widewaters Group. The buyer was DC Seattle 1 Property LLC, which is associated with Dynamic City Capital of Provo, Utah.

The topline price was nearly $107.8 million, which works out to around $470,729 per room. But as with most hotel deals, there was a large personal property deduction for the furniture, etc. That totaled about $24.7 million. Thus the taxable amount is around $83.1 million.

Brokers were not announced.

Completed in 2018 on the corner of Stewart Street, the 16-story hotel has 229 rooms. It operates as part of Hilton's Curio Collection. It also has a 3,300-square-foot restaurant, Patagon, and 5,000 square feet of top-floor amenity space — including the Fog Room lounge.

The Charter is part of a condominium, and was developed in tandem with the Helios apartments, at Pine Street, where Equity Residential is the owner and original developer.

The half block has a long and extremely convoluted past. Some may remember that past owner Starwood actually filled in the pit in 2009, after the proposed 1 Hotel project — planned by former owner Avalon — was paused due to the Great Recession. Equity later bought the half block in 2012. Its garage for the 39-story Helios extends north to Stewart.

With Helios then under construction, Equity sold the north condominium unit to Widewaters, of Syracuse, New York. That deal for the development rights came in early 2016, with no dollar amount recorded. Skanska then built the Charter, with Hogan + Campis of Atlanta as the architect (aka HC Architecture).

Dynamic City is a specialist in hospitality investing, and lists about two dozen hotels in its portfolio. Included among them is the AC Hotel in Bellevue, which traded last year for over $83 million. The new owner was then known as Lodging Dynamics.