SEATTLE – For the GlobeSt.com's 2019 ADAPT awards, within the historical preservation category, we have chosen to credit the Palihotel in Seattle as the winner for the best upside realization of a historic building. We will be honoring the project at our awards ceremony in Baltimore on September 16^th. Recognizing its potential, the local, non-profit owner of the former Gatewood Hotel/Apartments pursued a developer to revitalize and renovate the historic building in Seattle's Pike Place Market. The previously vacant, 50,510-square-foot building featured residential and retail space, serving many uses in its rich history. The building posed significant concerns and hazards due to lack of occupancy and outdated maintenance issues. Upon deal negotiations from 2015 to 2017, Lighthouse Investments secured capital and a construction loan to purchase the building and develop a viable construction mission. Prior to closing the transaction, the investment company hired a team to develop a plan and begin work on construction drawings, due to the vast amount of work in store. Alongside a local contractor, the firm created designs for a 96-room boutique hotel, Palihotel Seattle, a ground-floor restaurant and bar, The Hart & The Hunter, as well as a renovated lobby, coffee shop, multipurpose room and retail space. Recognizing the prominent location within the popular neighborhood, Lighthouse looked to breathe new life into the historic, forgotten building.

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➤➤ Join your colleagues at the GlobeSt.com ADAPT: Opportunity Zones awards September 16th in Baltimore, MD, where we put a spotlight on the achievements of those who have had a hand in locating adaptive reuse solutions across the country. At the same time it is also focusing on Opportunity Zones and the potential they offer - for both adaptive reuse and new construction. Click here to register and view the agenda.

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Lighthouse was able to obtain the building's prior renovation plans to gain an in-depth understanding of its components and prepare for the large-scale, gut renovation ahead. Construction commenced in September 2017, rebuilding plumbing, electrical and mechanical systems from the ground up. The team reconfigured all floor levels in the building, a main concern for the project, while maintaining original framing and reconfiguring retail space. Unforeseen changes and labor challenges were faced throughout the project, as the team dealt with supply chain issues, subcontractor availability and restricted workflow. The project demanded major construction to replace much of the work from a more recent 1991 renovation such as structural flaws and incomplete framing. Lead time issues also posed a problem, requiring the design team to diligently search for and secure many alternative products. Upon receiving City of Seattle landmark status and ensuring preservation from the Federal Registry of Historic Places, Lighthouse completed and opened the Palihotel Seattle in November 2018. Creating the historic project in a robust economy certainly paid off, as locals and guests alike enjoy the hotel and retail offerings, sparking additional economic developments nearby. The firm was able to turn the buildings undesirable elements into safe, bright qualities, creating an award-winning hotel that was included on Travel & Leisure's It List 2019.