University District Uses Go Beyond Student Housing

SEATTLE—With more than 14,000 residents and hundreds of independent businesses, Seattle’s University District neighborhood is a cultural and economic hub, and home to one of Seattle’s largest employers, the University of Washington. Recently, the U-District was up-zoned in anticipation of Sound Transit’s new light rail University District station, which will open in the neighborhood in 2021.

Two parking lots are within one block of the new light rail station. The sites currently provide parking at 4530 12th Ave. NE (Lot A) and 4536 Brooklyn Ave. NE (Lot B).

University District Parking Associates Inc. has selected a development team comprised of Seattle-based developer Touchstone and Atlanta-based developer Portman Holdings as its long-term ground lease partner. Touchstone and Portman plan to start the entitlement process on the sites this summer with project completion slated for 2023.

“UDPA conducted a global search to find the most qualified development team to bring vitality and positive economic impact to the U-District. The combination of Touchstone, one of the most qualified and experienced local developers, in concert with Portman’s global strength and accomplishments, created the optimum partner to improve our community,” said Don Schulze, University District Parking Associates president.

At its newly leased sites, zoned for both mid and high-rise buildings, Touchstone and Portman are planning a diverse mix of commercial office and retail to help ensure that the University District neighborhood contains uses beyond student housing. Current plans include a 190,000-square-foot office building on Lot A and a 155,000-square-foot office building on Lot B. Both buildings will include ground-floor retail and below-grade parking. These sites are just a few steps from one another and could therefore easily accommodate a 345,000-square-foot user.

“The addition of light rail next to the University of Washington and in the center of the U-District neighborhood is a once-in- a-generation transformational opportunity. This creates the perfect time to reimagine these lots in a way that is consistent with UDPA’s mission and vision,” said Touchstone CEO Pat Callahan.

The development is part of a mixed-use destination with creative workspaces that speaks to the trend of the co-location of office in proximity of educational, research, residential, retail and transit amenities. These types of projects are further connected and enhanced by high walk and bike scores, says Portman.

“There is high demand from innovative tech, life science and R&D companies for space with better access to talent and research hubs surrounding great universities, and the University District is an amenity-rich environment desirable to office users across sectors. Additionally, Touchstone and Portman have a great working relationship and this project is well-suited to combine our deep local knowledge with Portman’s national and international expertise including development around universities,” Callahan tells GlobeSt.com.

Trinity Real Estate advised University District Parking Associates in this transaction. Formed in 1944 by local U-District businesses, University District Parking Associates’ purpose is to provide affordable parking in support of the local business community as well as its customers and employees.

Student housing pre-leasing for fall 2019 is on the same pace as last year, with April figures for both years reported at 65% pre-leased according to Axiometrics.  The most notable change in pre-leasing year-over-year was the fact that most companies started the pre-leasing process earlier this year–many as early as September–than in year’s past, says Frederick W. Pierce, founder, president and CEO of Pierce Education Properties PEP.

In addition to these two developments in the University District, Touchstone and its parent company, Urban Renaissance Group, currently have several active projects including an office redevelopment on Blake Street in Denver as well as the Canvas at Press Blocks office project and Press Blocks residential tower (337 units) in Portland. Other new development completed in this cycle include office projects Troy Block (810,000 square feet), Hill7 (285,000 square feet), NorthEdge (210,000 square feet), Tilt49 (290,000 square feet) as well as hospitality projects Hilton Garden Inn (222 keys), Everett Courtyard by Marriott (156 keys) and Issaquah SpringHill Suites by Marriott (145 keys).

Portman’s completed developments include Union Tower West in Denver and the 800-key BRIC hotel complex on Broadway in San Diego.