Kidder Mathews is pleased to present the opportunity to acquire the Ballard Magnum Offering located in one of Seattle’s most highly populated and rapidly developing Ballard neighborhoods.
Kidder Mathews is pleased to present the opportunity to acquire the Ballard Magnum Offering located in one of Seattle’s most highly populated and rapidly developing neighborhoods. This property is truly unique in its setting near Ballard’s retail row of high-end niche shops, restaurants and bars, as well Seattle’s ship canal and the Ballard Locks. This offering is on the market for the first time ever and presents significant value-add potential in a well-established, proven submarket.
The Ballard Magnum Offering includes two neighboring properties, separated by an alley way, on 32,550 SF of land positioned off Shilshole Ave NW and Ballard Ave NW. The larger parcel consists of a two-story 63,240 SF warehouse building, historically operated as self-storage on 27,900 SF of land, with the smaller 4,650 SF lot utilized as a parking lot across the alley and fronting Ballard Ave NW. Positioned within blocks of the Salmon Bay waterfront, several of Seattle’s major landmarks including the Ballard Locks, Golden Gardens Park, and the Ship Canal, as well one of Seattle’s fastest growing submarkets this offering is well suited for numerous potential end uses, including office, retail, storage, and industrial.
Located just north of the Seattle’s Ship Canal, Queen Anne, and Magnolia neighborhoods, the Ballard Offering Portfolio is situated in the center of Ballard. Known for its Scandinavian roots and deep ties to the fishing industry, Ballard is largely considered one of Seattle’s best places to live. With its deep Nordic and maritime roots, Ballard perfects the combination of historic and hip allowing trendy shops, restaurants, and bars to thrive.
The property has exceptional visibility and enjoys views of Seattle’s downtown skyline as well as Salmon Bay waterfront. With 1,820 apartment units recently completed within a half mile radius of the property, another 254 units under construction, and an additional 1,260 units in the pipeline, this area will continue to densify and grow as the general Seattle market continues to expand with the incredible level of recent well-paying job growth.
The Ballard Magnum Offering provides a prospective buyer an outstanding opportunity to develop a range of end uses. Though not contiguous, a potential developer has the advantage of building a larger project with the rare benefit of a neighboring parking lot. Additionally, the structural integrity and current configuration of the existing warehouse provides an opportunity to be repurposed for an owner/user or value-add investor. This offering presents an exceptional value-add opportunity in Seattle’s highly desirable Ballard neighborhood.
The Ballard Magnum Offering is being offered for sale unpriced, and includes both properties. The ownership will review and respond to offers as submitted while reserving the right to call for offers at a later date.
|Addresses||5422 Shilshole Ave NW
5415 Ballard Ave
|Lot Size||5422 Shilshole Ave NW: 27,900 SF
5415 Ballard Ave: 4,650 SF
TOTAL: 32,550 SF / 0.75 AC
|Total Bldgs / Type||Warehouse / Storage: 1
Parking Lot: 1
|Total BLDG SF||Warehouse / Storage: 63,240 SF|
|Zoning||5422 Shilshole Ave: NW IG2 U/65
5415 Ballard Ave: NC2P-65
Once in a generation opportunity for a unique value-add opportunity situated in the heart of Seattle’s thriving Ballard neighborhood.
|Building Size||63,240 SF|
|Year Built||1941 / 1970|
Located northeast within a couple blocks of Salmon Bay waterfront, the property is situated in the heart of Old Ballard, surrounded by several large-scale planned developments. The site is positioned off of the highly trafficked Shilshole Ave NW providing exceptional visibility and access as well as a second entry point with the neighboring parking lot. Formerly used as a self-storage facility, the property now consists of a vacant 63,240 SF warehouse on 27,900 SF of land. The building is comprised of two stories with several loading doors ranging from 32 to 42 feet on the North side of the building as well as a truck height and ground loading door on the south side of the building. The interior of the building consists of numerous large storage spaces. The structural integrity and interior layout are well situated for a prospective buyer to either collect cash flow while working through entitlements, or alternatively repurpose the property for an owner/user or value-add investor. This offering presents an excellent opportunity to acquire a site in Seattle’s thriving close-in industrial market with the unique advantage of a neighboring parking lot for direct access.
|Overlay||Ballard Ave Landmark District|
|Permitted Uses||Caretakes quarters, retail, office, residential|
Separated by an alley way, this property is directly east and located off of Ballard Ave NW. The property is level, 100% paved and consists of 4,650 SF of land. The neighborhood commercial (NC2P-65) zoning provides a wide range of end uses for a prospective buyer or alternatively the continued use as a parking lot to support the structure that could be developed on the neighboring former self-storage building. The ability to provide another access point to the neighboring property presents a significant advantage in an already dense area. With 1,820 apartment units recently completed, 1,320 units planned and 254 units under construction within .5 mile of the property, there is substantial office and retail demand in this immediate area to capitalize on.
As growth continues to soar throughout Seattle, surrounding neighborhoods are experiencing the demand and influx of population. Ballard, in particular, has seen extreme growth witnessed by its hefty development pipeline, with over 5.5M SF in the pipeline within a one-mile radius of the subject properties. As this area continues to grow, prospective developers can capitalize on the flexible zoning of the subject properties that allow for a variety of end uses as well as benefit from the nearby demand and development that is already underway. The industrial zoned nature of the self-storage parcel can be utilized to either repurpose the existing structure or develop an array of end uses including office, retail, caretaker’s quarter among others. The flexible neighborhood commercial zone of the neighboring land parcel provides an opportunity either for development or alternatively, be utilized as parking and another entry point for the self-storage parcel.
Located in Northwest Seattle, the Ballard neighborhood is one of Seattle’s highly populated and fastest growing submarkets in the region, with immediate access to a robust residential, commercial and industrial community. Known for its Scandinavian heritage, Ballard is rich in history and traditions being home to the Nordic Museum, which celebrates both the community of Ballard and the local Scandinavian history, as well as several other landmarks including Ballard Locks, Shilshole Bay Marina, and Golden Gardens Park. Ballard includes a collection of six smaller neighborhoods (Sunset Hill, Loyal Heights, Whitter Heights, West Woodland, Crown Hill, North Beach/Blue Ridge) and is nestled against Shilshole Bay to the west and Salmon Bay to the south. Ballard has evolved to embrace its industrial nature with a modern twist by becoming one of Seattle’s most prominent restaurant, nightlife, and brewery scenes attracting significant foot traffic throughout the day. With downtown Seattle less than fifteen minutes away, this immediate area will continue to absorb the influx and growth the greater region continues to experience.
BALLARD LINK EXTENSION OPEN
The Puget Sound region has proven its economic viability and resilience through the several economic storms its weathered from the boom and bust cycles of Boeing, the Dot Com crisis to the financial crisis in 2008. The strength and continued growth the region experiences have garnered a significant amount of investment dollars from corporations, institutions, and individuals both locally and worldwide. At the heart of the region is Seattle and its unprecedented economic growth that has led the way for much of the country, being recognized as the fastest growing big city in the country, the nation’s #1 city for jobs, and the current crane count leader. This growth is largely attributed to its burgeoning tech industry and highly skilled labor pool. Several giants in the tech world call Seattle home, including Microsoft and Expedia, while numerous others continue to expand their Pacific Northwest footprint, including Amazon, Google, Facebook, and Apple. Most recently, Amazon has committed to over 1 million SF in Bellevue, casting a footprint large enough to rival a second headquarter location, further demonstrating the Puget Sound Region’s economic appeal. In addition to its technology industry, the skilled workforce in Seattle has proven a hotbed for its overall business culture. Other Fortune 500 companies call Seattle home like Boeing, Weyerhauser, Starbucks, and Nordstrom, which provide a strong sense of diversity from the technology industry. According to the website for the City of Seattle’s Office of Economic Development, Seattle remains an established leader with immunotherapy as well, with anchors like Juno Therapeutics and the Fred Hutchinson Cancer Research Center. In South Lake Union, research and development in engineering and life sciences is nearly 14 times more concentrated than it is nationally. The booming tech industry generally takes the headlines, but an emerging life sciences sector, a growing talent pool, and an active commercial real estate industry has made the Puget Sound an increasingly strong economic hub for the foreseeable future and a big reason why the region’s current unemployment rate is at 2.9%. The overall office market throughout Seattle has experienced significant growth from the strong region wide economic fundamentals as well. Rents have increased steadily for the past six years as vacancy continues to hover below 10% region wide. Activity in this sector shows little signs of slowing either, as technology companies continue to expand their footprint by taking up space in Seattle and the surrounding submarkets. Record per-square-foot sales prices for commercial buildings continue to rise and positive absorption continues to increase. Seattle’s recent growth that’s twice the national average, a diverse economy with an educated, young workforce, coupled with major sports teams and natural attractions, provides for an ideal environment to live, work, and flourish.
In addition to the search for more space, in 2017 the net absorption for the Puget Sound region was 4.1 million square feet, which ranked second in the country only to Dallas. With a significant amount of office space in the construction pipeline, and 71% of that currently under construction already pre-leased, those positive absorption figures are likely to stay high through the next two years.
The significant growth in the Puget Sound’s job market has created huge demands on the residential supply throughout the area. Throughout 2017 roughly 23,800 jobs were added to the Puget Sound region with employment growth at 2.6% and income growth rising 5%. These positive trends have meant a booming market for the area’s multifamily sector.
Rents have risen steadily throughout the area as the insatiable demand for housing grows. The opportunity for rent growth continues throughout Seattle as apartment vacancy rates have remained under 4% for more than three years while rents have risen as much as 30% in some submarkets. The in-migration of well-paid employees looking for apartments in the core areas near job hubs will also keep the market strong. And as the median income continues to rise, which in some areas it has grown from $70k to over $80k in a few years, a strong class of renters will maintain the strong demand throughout the area.
The strong and growing renter pool throughout Seattle is largely driven by the growth in personal income. According to GeekWire, Washington state leads the nation in personal income growth. This growth has also pushed housing prices to all-time highs throughout the region, causing the Greater Seattle area to lead the nation in home price increases for 20 months in a row. Despite these rising housing costs, many of the well paid workers in the area are still making more money in Seattle with their salaries going further in Seattle than in competing markets, making the city the top relocation destination for workers elsewhere.