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City Has Buyers for Arctic, Alaska Buildings

SEATTLE-Arctic Club Hotel LLC is negotiating to purchase the 10-story, 96,000-sf Arctic building and convert it to a hotel. A joint venture of Kauri Investments and Ariel Development is negotiating to purchase the 15-story, 140,000-sf Alaska building and convert it to housing. The asking prices were $4 million and $6.5 million, respectively.

By Brian K. Miller | Updated on October 28, 2004

SEATTLE-Four months after the offering memorandum was sent out, the city has lined up potential buyers for the Arctic and Alaska buildings. A joint venture of locally based Kauri Investments and Ariel Development is negotiating to purchase the 15-story, 140,000-sf Alaska building and convert it to housing. An entity of Spokane, WA-based developer ConoverBond is negotiating to purchase the 10-story, 96,000-sf Arctic building and convert it to a hotel. Built in 1904, the 96,000-sf Arctic Building at 700 Third Ave. is on the National Historic Register. Its defining features include a row of terra cotta walrus heads and a rococo-gilt Dome Room. The asking price for the 10-story structure was $4 million ($41.66 per sf). The 15-story, 140,000-sf Alaska Building at 618 Second Ave. was the city’s first steel-frame skyscraper when it was completed in 1914. The asking price was $6.5 million ($46.42 per sf). The ground floors of both buildings are leased to private-sector retail tenants with the upper floors less and less occupied by the city of Seattle, which is why the asking price reflected the redevelopment opportunity more so than an income-producing investment. Joan Rosenstock, the city’s senior planner and project manager overseeing the disposition, said at the time the offering memorandum was sent out that the city might be interested in leasing back a portion of the Alaska building for a period of time, but not the Arctic Building. She added that the asking price for the properties was based on an appraisal, current market conditions, the current condition of the buildings and the existing debt on the property. Meriwether Partners LLC is representing Seattle on these transactions. Neither Rosenstock nor Meriwether principal Robert Briscoe could be reached Thursday afternoon for comment.

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