$400M Week for Pacific Northwest: Madison Marquette Acquires Pacific Place Mall, Pebblebrook Buys The Nines Hotel
- Jul 19, 2014
The Pacific Northwest’s commercial market had one of its best weeks by the numbers, as two properties in Portland and Seattle traded hands in deals worth a combined total of nearly $400 million. Madison Marquette acquired the Pacific Place Mall in Seattle, while Pebblebrook Hotel Trust picked up The Nines Hotel in Portland.
Madison Marquette paid developer Pine Street Development $271 million for the Pacific Place retail center. Totaling around 350,000 square feet of space, the five-level regional shopping center has been active since it was constructed in 1998. The property had been on the market since January. According to Bloomberg Businessweek, $14 million of the sale proceeds are set to go to the United Way of King County, due to the involvement of Matt Griffin, a partner in Pine Street Development and chairman of the United Way campaign.
At the time of the transaction, the shopping center had an occupancy rate of 90 percent, with anchor tenants Barnes & Noble and AMC Theatres and upscale retailers such as Barneys New York, Tiffany & Co. and Kate Spade rounding out the tenant roster.
Pebblebrook Hotel Trust completed yet another acquisition in the Pacific Northwest with its purchase of The Nines Hotel in Portland. The buyer paid $127 million for a fee simple condominium interest in the facility, which occupies floors six through 15 at the 1909-built historic property located at 525 SW Morrison St. In 2008, the property underwent a comprehensive $140 million adaptive reuse renovation and was reopened as The Nines Hotel.
The new owner is set to invest $6 million to $8 million worth of capital in the updating of the hotel’s guestrooms and common areas, a process reportedly set to begin during the fourth quarter of 2015. The LEED Silver-certified facility offers 331 rooms, ranging in size between 365 and 628 square feet. Despite the change in ownership, the hotel will continue to be operated by Sage Hospitality and Sage Restaurant Group, maintaining its association with Starwood’s Luxury Collection brand.