Overview

The Offering

Kidder Mathews is pleased to present the Deeny Site, a Transit Oriented Development offering presenting a unique opportunity to acquire developable land in Seattle’s rapidly evolving Northern Rainier Valley neighborhood. This property consists of approximately 1.5 acres of land with a Wendy’s Drive-Thru operating on the eastern portion of the property and an office and warehouse on the western portion of the property. The Seller intends on dividing the property in two sections before closing this transaction to keep the Wendy’s and sell the remaining piece of approximately 64,000 SF of land.

The Deeny Site presents an incredible opportunity to develop a residential project in the high demand market in the Northern Rainier Valley within a 6 minute walk to the Mount Baker Light Rail Station. With trains coming through this area every six minutes connecting downtown Seattle, downtown Bellevue (within the next six years), the University of Washington, and SeaTac International Airport, this property is strategically positioned to attract a tenant base that wants to utilize public transportation.

This property is situated above the Rainier Ave corridor providing a quiet, peaceful setting. The site’s higher elevation also provides excellent views to the north of downtown Seattle as well as to the east of Lake Washington. While situated above Rainier Ave, the property has access to McClellan to the south and the intent is to divide the existing parcel to provide access to the east to Rainier as well.

Seattle’s most recent growth has caused a significant level of demand for new residential product, from traditional apartments to senior housing. This unprecedented growth has also caused national publications to award numerous honors to the area, including the #1 City in the US to find a job, the #1 fastest-growing big city, the #1 highest job growth for small business in the US, and the #1 most sustainable city in the country, among others. Seattle currently has an unemployment rate of 2.9% and shows no signs of slowing down as local corporate giants continue to grow, including Amazon, Boeing, Microsoft, Expedia, Nordstrom, and Starbucks, to name a few, while many other large employers move into the area, including Facebook, Google, and Apple.

The Deeny Site is located in the up-and-coming northern Rainier Valley neighborhood and surrounded by a significant amount of new development, including 38 nearby projects with over 2,100 new residential units and 71,000 SF of new retail coming to the area. This submarket will become a focal point for new growth as fewer larger development sites remain in other areas throughout Seattle, and the proximity to transit and the region’s downtown office cores become more important as ongoing traffic issues plague the Puget Sound’s development.

Offering Process
This property offers an exclusive opportunity to acquire almost an acre and a half of readily developable land in the strongest, fastest growing city in the country. This property is being marketed for sale without an asking price. The Ownership reserves the right to set a call for offers date after taking the property to market.

Property Overview

Offering
City Block Development Opportunity

Property Location
2543-2547 Rainier Ave S
1 Block North of Mt Baker Light Rail Station

King County Tax Parcel Numbers
000360-0007 (Subject to change upon subdividing the parcel)

Property Size
+/- 64,285 SF | 1.48 Acres

Locality
City of Seattle

Zone
SM-NR 85’ (Seattle Mixed – North Rainier) – on eastern portion of property / C1-65’ (Commercial) – on western portion of property


Property Details

This offering is currently an 88,426 SF site situated off of Rainier Ave with a stand-alone, Wendy’s Drive-Thru on the site as well as a smaller two story office building on the western portion of the building off of Rainier Ave. Once sub plotted, the parcel for sale is estimated to be approximately 64,000 SF with a small drive aisle connecting the property to Rainier Ave. Additionally, 25th Ave S connects the property to S McClellan St and the Mount Baker Light Rail Station to the south.

This property has most recently housed a Wendy’s Drive-Thru on the eastern portion of the site, closest to Rainier Ave, and Deeny Construction on the western portion of the property. As light rail further connects this site with the Puget Sound’s Central Business Districts, and as more residential units and high traffic retail come to the area, the company has decided to relocate.

Due to the significant densification of the surrounding area, and Seattle more broadly, the site has naturally evolved into a development opportunity primed to capitalize on the growing nearby demand. The property falls within two separate zones, including SM-NR 85’ (Seattle Mixed-North Rainier - 85’) and C1-65’ (Commercial 1 – 65’) both of which allow for a significant level of residential development.

Highlights

  • Close proximity to Mt. Baker Light Rail Station connecting the area to Seattle and Bellevue’s CBD
  • Views on the higher floors to the east of Lake Washington and the north of Seattle CBD
  • Greenbelt and densely forested green area neighboring property to west
  • Access to McClellan to the southern portion of the property and Rainier Ave to the east
  • Ability to mass 220+ units in a wood frame building up to seven stories high
  • Strong rental market in the #1 fastest-growing big city in the country
  • Excellent access to I-90 and I-5 connecting Seattle the rest of the Puget Sound
  • Surrounded by fast developing submarkets, including Beacon Hill, Columbia City, Capitol Hill
  • Minutes to Seattle’s central business district

Zoning Summary

Zone  C1-65’

Permitted Uses  Retail, office, apartments

Height Limit  C1-65’: 65’

Maximum Density / FAR  C1-65: Residential-only or nonresidential-only - 4.25 / Mix of residential & nonresidential - 4.75 / Underground space not counted toward FAR

Zone  SM-NR 85’ (Seattle Mixed – North Rainier – 85’)

Permitted Uses  Retail, office, apartments

Height Limit  SM-NR 85’: 85’

Maximum Density / FAR  SM-NR 85': Max FAR - 6.0 / Underground space not counted toward FAR

Urban Village Overlay
The subject site is located within the Baker (Hub Urban Village) and within the Southeast Seattle Reinvestment Area

Pedestrian Street Overlay
Rainier Avenue adjacent to the subject site is classified as a Class II Pedestrian Street

Residential Amenities
5% of residential floor area, open to the outdoors

Parking Quantity
No parking required for the first 1,500 SF of any buisness / No parking is required in Urban Centers or Urban Villages with light rail station area overlay districts / No parking is required in Urban Villages as long as frequent transit service is available within 1/4 mile

Development Options

Massing Study Building Sections
Massing Study Plans
Massing Study - North Aerial View
Massing Study - North View
Massing Study - North West View
Massing Study - South West View

Location

Overview

The Deeny Site is located in the Northern Rainier Valley neighborhood, a fast-growing submarket right in the center of Seattle, neighboring Beacon Hill, Columbia City, First Hill, and the Central District. The Northern Rainier Valley neighborhood is centrally located along the light rail line with close proximity to all of the major access routes and business districts in the Puget Sound. The Deeny Site is ideally located in Seattle with quick access to the entire area, including:

  • 2.1 miles – 8 minute drive to Seattle University
  • 2.7 miles – 9 minute drive to Century Link Stadium
  • 2.9 miles – 12 minute drive to downtown Seattle
  • 3.0 miles – 13 minute drive to Seattle Ferry Terminal
  • 4.5 miles – 14 minute drive to South Lake Union and the rapidly expanding Amazon campus
  • 4.8 miles – 14 minute drive to University of Washington
  • 12.1 miles – 21 minutes to Seatac International Airport
  • 50.9 miles – 53 minute drive to skiing at the Summit at Snoqualmie
  • 109 miles – 3 hour 46 minute commute to San Juan Island

Map

Amenities Map

Proximity to Seattle CBD

3 Miles

Located less than two blocks south, the Mount Baker Station opened in 2009 and serves over 2,200 daily boardings per day.

Seattle’s Public Transit

Located less than two blocks south of the Deeny Site, the Mount Baker Station opened in 2009 and serves over 2,200 daily boardings per day. The Mount Baker Station is located north of the Columbia City Station and east of the Beacon Hill Station. With trains running every 6 to 10 minutes, this station connects everything as far south as Seatac and as far north as the University District, soon with connections to Bellevue and Snohomish County. The Seattle Streetcar will be another major benefit for passengers, connecting all of Capitol Hill with First Hill, the International District, and Pioneer Square.

Judkins Park Station

Located in the center of I-90, riders will be able to enter the station from Rainier Ave S and 23rd Ave S. The Judkins Park Station will have a centerplatform located in the center roadway of I-90 with bicycle and pedestrian connections to the I-90 trail as well as bus connection at the east and west entrances. Sound Transit expects the light rail to open in 2023.

Market Area

Puget Sound Overall Market

Seattle is a world-class city, boasting the nation's fourth-largest export market and some of the world's top aerospace, life science, and technology companies. Seattle has become a choice destination for international tourists who are valuable contributors to the local economy. Now with an unemployment rate near 2.6% and a strong, and growing, level of household income, Seattle is becoming a major player on the world market.

The strong local economy coincides with a vibrant educational environment; in fact, 59% of Seattle residents have earned college degree or above, compared to 30% nationally. Seattle is often ranked as one of the most educated and most literate cities in the US. The area boasts one of the perennial top universities nationally in the University of Washington, and two large, highly reputable private universities in Seattle University and Seattle Pacific University. Also coming to the area is one of the region’s first multinational universities, the Global Innovation Exchange, which is a partnership of the University of Washington, Microsoft, and China’s Tsinghua University.

The level of higher education throughout the region has led to a highly talented workforce in numerous sectors. Seattle is an established leader in immunotherapy, with anchors that include Juno Therapeutics, Fred Hutchinson Cancer Research Center, and the globally ranked University of Washington. The Gates Foundation and PATH have led the charge on global health, making it one of our region's key intellectual global exports.

The technology sector in Seattle is also one of the strongest and fastest growing in the world. Industry leaders, Amazon, Expedia and Microsoft have long called the Seattle area home, which has attracted numerous additional tech companies drafting off of the wealth of talented employees throughout the area. According to Glassdoor, Seattle is now the No. 1 best paying city for software engineers based on a “real adjusted salary”. With over 4,200 current job openings for software engineers, twice that of San Jose and almost as much as San Jose and San Francisco combined, the influx of tech employees shows no sign of slowing, especially considering Amazon’s larger growth and the anticipation of up to 70,000 Amazon employees (or more) in the Seattle core by 2022.

With the number of large scale employers and economic growth coming to the area, the local office development market has also shown a significant surge. The Seattle- Bellevue office market is expected to deliver 6.5 million square feet of office space in the next 18 months. Major recent absorption of recent deliveries and a tightening amount of availability speaks to the economic growth of the area as more large employers expand their presence in this area.

Regarding the development landscape, the cranes on Seattle's skyline show a booming development market. In fact, the crane count increased 43% from the summer of 2015 to January 2016. Between 2011 and 2015 the value of both multifamily and industrial construction projects increased approximately 500%, and in 2015 the total value of 2,230 commercial construction projects exceeded $2 billion.

Of the 65 cranes under construction on buildings in the Seattle core area, 2/3rds are for housing with more than 20,000 units scheduled for completion after 2017. Currently, over 70,000 people live downtown, an increase of 18% since 2010, and many continue to move to the core and neighboring areas. Much of the reason for this centralization of the housing force is based on the movement over the last two years of large employers to Seattle’s downtown, and close neighboring submarkets, including Weyerhaeuser, Amazon, Facebook, and Expedia.

Seattle’s apartment market now has the fastest growing rental rates in the nation, with year-to-date rental rates at over 10 percent. These rates have grown at four times the national average, suggesting a tight market amidst the rapid expansion and development. With this growth in rent is a growth in Seattle’s expected population. Just two years ago U.S. Census data showed Seattle was the nation’s fastest-growing city, and is further expected to increase 38% by 2040.

Jay Denton, senior vice president of analytics for Axiometrics, recently said in a press release, “Seattle’s performance is still in the top three among major markets. Job growth is generating a robust demand, supply is manageable and occupancy is high. That’s a winning formula for apartment owners and investors.”

Major Regional Employers

Microsoft, Boeing, and now Amazon, have historically dominated the Puget Sound’s office markets. An emerging trend in this area, however, has been the growth of startup technology and life science companies, thanks largely to a highly educated employee base.

The University of Washington, Seattle University, and young employee alumni of Microsoft and Amazon have amplified the entrepreneurial mindset in the area.

Further, the world’s best capitalized non-profit, Bill and Melinda Gates Foundation, is located in Seattle with a commitment to entrepreneurialism, expanded educational opportunities, and access to information technology. Other large office tenants in the area include:


Seattle named 3rd Smartest City in North America by Fast Company

6th Best City in the U.S. for Business Careers by Forbes

5th Best City in the Nation to find a Job by Glassdoor

59% of Seattle residents have earned college degree or above, compared to 30% nationally

Development Pipeline - Localized

CBD Development Pipeline

Nearby Companies

Due Diligence

Please register to go to gain access to the due diligence documents.