Long-Term Optimism Prevails for Seattle’s University District

SEATTLE—University District Parking Associates Inc. selected Seattle-based commercial real estate firm Touchstone and Atlanta-based real estate development company Portman Holdings to initially redevelop the University District parking lots in 2019. The firms are now working on the two-building mixed-use project in the University District.

Construction on the Chapter Buildings and Brooklyn Cut is anticipated to begin in 2021 and the project is estimated for completion in 2023. The new development is located within one block of Sound Transit’s future link light rail station, which opens in fall 2021.

“As a long-term business owner, I’ve seen the University District neighborhood change many times over the years,” said Don Schulze, University District Parking Associates president. “While times are currently difficult, we have a long-term optimism for this neighborhood and are confident that the Touchstone and Portman Holdings are the right development partners for this important project.”

The Chapter Buildings’ mixed-use development, which is located at 4530 12th Ave. NE (Building I) and 4536 Brooklyn Ave. NE (Building II), also features a mid-block pedestrian connection and public open space called the Brooklyn Cut. The Chapter Buildings will be the first opportunity for office employers to locate adjacent to the University of Washington.

“We’re excited to advance this transit-oriented office and retail project in Seattle’s University District,” said Touchstone CEO Pat Callahan. “The opening of light rail in the neighborhood will be transformational and at Urban Renaissance Group/Touchstone, we hold long-term optimism around the need for transit-focused jobs in strong urban neighborhoods.”

Chapter Buildings’ Building I will rise 12 stories and feature 240,000 square feet of office space, 8,800 square feet of ground-floor retail and two-and-a-half levels of below-ground parking (200 stalls). Building II will be 10 stories and include 156,000 square feet of office space, 4,000 square feet of retail space and two levels (85 stalls) of below-ground parking.

“The Chapter Buildings name marks an exciting time for the U District. It has a confidence about it and balances a nod to academia with a new chapter for the U-District and working in Seattle,” said Joe Polito, vice president of development for Touchstone. “A project of this type and scale is the first of its kind in the University District.”

Both buildings will be built to US Green Building Council LEED Gold and Fitwel Certification standards. Composed of a masonry and glass exterior, both buildings feature lobbies with collaborative workspaces and lounge areas featuring hospitality-inspired designs, on-site exercise facilities, bicycle storage, service centers, and showers and lockers. The buildings’ outdoor spaces and views offer tenants areas for meetings or relaxation.

“The Chapter Buildings provide a unique and compelling opportunity for companies to locate immediately adjacent to one of the nation’s top public universities,” Callahan tells GlobeSt.com. “Along with the buildings’ amenities, access to the neighborhood’s existing amenities, and being one block from the light rail station, this project offers the strongest prospects for recruitment and retention of top talent.”

The Brooklyn Cut will feature 8,000 square feet of privately developed publicly accessible neighborhood open space that includes a mid-block connection between 12th Avenue and Brooklyn Avenue NE. The Brooklyn Cut neighborhood open space is intended for everyday use by building occupants and the neighborhood as well as for special community events. The open space will have traditional park hours.

As the effects of COVID-19 continue to be felt across the world, the Chapter Buildings have been designed with a new level of health, safety and wellness in mind. Featuring large open floorplans of up to 30,000 square feet with operable windows, rooftop decks and minimal columns, the Chapter Buildings provide functional and clean workspaces where tenants can control the climate, air quality and humidity of individual spaces.

Specific highlights include Sensible Cooling units and Dedicated Outdoor Air System/DOAS, which continuously circulates 100% fresh outside air via the HVAC system. Additionally, the project team is pursuing design features that allow a completely touchless experience from building entry to elevator use, washroom design and navigating signage in common areas and workspaces.

Chapter Buildings’ and Brooklyn Cut main project team members include Touchstone and Portman Holdings (developers), Urban Renaissance Group (property manager), Portman Architects (design architect), CollinsWoerman (local architect/interior designer), GGLO (landscape architect) and Lease Crutcher Lewis (general contractors). Additional team members include Colliers International’s Greg Inglin, David Abbott and Laura Ford (leasing), DCI (structural engineer), CPL (civil engineer), MacDonald Miller (mechanical engineer), Sequoya (electrical engineer) and Fuzzco (branding).

In addition to these projects, Touchstone and its parent company, Urban Renaissance Group, currently have several active projects that include the Canvas at Press Blocks office project (150,000 square feet) and Press Blocks residential tower (337 units) in Portland. OR. Other new development completed in this cycle include 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), Issaquah SpringHill Suites by Marriott (145 keys), Thompson Seattle (148 keys) and Sage Lodge (50 keys).

Portman’s current projects include CODA Tech Square, the collaborative office building anchored by Georgia Tech, and the built-to-suit Anthem Technology Center, both in Midtown Atlanta. Other active projects include a new 700-key Hyatt Regency hotel in Salt Lake City, 2151 Hawkins in Charlotte (275,000 square feet), 1020 Spring St in Atlanta (375 units of residential and 575,000 square feet of office space) and Union Tower West in Denver (200,000 square feet) as well as several other projects.

Two important long-term factors to consider for the Seattle office market are statewide economic implications related to both job loss and job growth, and the long-term trend for certain companies to embrace the Work From Home trend, according to a second quarter office report from Kidder Mathews.

The Puget Sound Economic Forecaster is projecting employment decline of 7.2% for the second half of 2020, but projects positive 4% employment increase for 2021, suggesting that the employment picture will be improving. One other economic consideration that has mitigated some of the pandemic impact is that many office firms received Paycheck Protection Program loan capital to help keep businesses going.