(Read more on the multifamily market.)
BELLEVUE, WA-The would-be developers of a 12-story condominium tower here have closed on the land for the 242-unit project. Tonsing Properties LLC and its equity partner ProNet Capital LLC paid about $8 million for the one-acre site at 111th Ave. Northeast and Northeast 8th Avenue, across from a major office, retail and condominium development called the Bravern.
The transaction was financed with a $10-million acquisition and predevelopment loan from San Francisco-based Pacific National Bank of California. Tonsing CEO Raymond Tonsing tells GlobeSt.com that the total project cost is estimated at approximately $75 million and that gross revenue from unit sales should be "well over $100 million."
The project, called VIDA, will have smaller units with lower per-sf asking prices than has been typical in Bellevue, Tonsing says. Units will range from 450 sf to 900 sf and average about 650 sf, he says, and the per-sf price will come in $100 to $125 below other units on the market. As a result, the price per unit will range between $300,000 and $800,000, while most other high-rise product in the market has larger average unit sizes and unit prices that start at $800,000, he says.
"I see a huge void in the marketplace [for smaller unit sizes and lower per-sf prices]," Tonsing says. "The concept has been proven out in major cities but it's a little unprecedented in Downtown Bellevue; everybody here has been chasing the market for larger, more luxurious units," Tonsing tells GlobeSt.com. "But I think I'd feel safe with any product type in Bellevue; it's the best market in the country right now."
Downtown Bellevue is growing rapidly, with more than 1.7 million sf of office, 500,000 sf of retail and more than 3,000 new multifamily units currently under construction. With major office tenants in Downtown including Microsoft, Expedia, Symetra and Eddie Bauer, it's estimated that more than 10,000 new workers will join the Downtown Bellevue work force within the next three years.
Tonsing Properties is a real estate investment and development company based in San Francisco. Denver-based ProNet Capital is a private equity company specializing in investments for high-net-worth individuals, professional athletes and entertainers.
In addition to the residential units, the project includes 10,000 sf of street-level retail and four levels of underground parking. The development site currently holds some small retail and residential uses, which will be razed to make way for the new development. The project sales center is scheduled to open in early 2008 with the public sales release to commence simultaneously. First occupancy is expected in late 2009.
The design for VIDA is a collaborative effort between Benjamin Parco and Frederic Cote of Huntsman Architecture Group, based in San Francisco, and Carlos A. de la Torre and Michael Hoffman from H+dlT Collaborative based in Seattle. Huntsman also will be the interior designer for the project.
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