HWE Brokers $87M Seattle-Area Hotel Sale
- Mar 22, 2018
WPPI Bellevue AC, an entity of White/Peterman Properties, has sold the Marriott-branded AC Hotel Seattle Bellevue/Downtown in Bellevue, Wash. The seven-story hotel, designed by DLR Group, changed hands in a transaction with lshin Aju Hotel Bellevue, which paid $87 million for the 234-key boutique lodging destination.
Sited downtown on 106th St. N.E., the AC Bellevue is the new kid on the block, having only opened its doors for the first time in August 2017. The lifestyle hotel also features such amenities as roughly 1,500 square feet of meeting space, and additional offerings typical to the AC brand. Hodges Ward Elliott, the commercial real estate services firm that marketed the hotel on WPPI’s behalf, saw no shortage of interest in the asset. “The response from the investment community was robust based on the attractiveness of the Seattle/Bellevue market and the quality of the asset,” John Sonnier, senior vice president with Hodges Ward Elliott, told Commercial Property Executive.
The development cost of the AC Bellevue is anything but public knowledge. However, King County records indicate that WPPI shelled out roughly $7.8 million to acquire the land for the hotel, which, as of earlier this month, is being managed by Crescent Hotels & Resorts.
Buying and selling in Seattle
Metropolitan Seattle attracted its share of investor interest in 2017, even with a market forecast that doesn’t exactly include any record-breaking statistics. “The year 2017 likely will mark the peak of the current business cycle for hotels in Western Washington,” according to a report by commercial real estate services firm Kidder Mathews.
In 2017, Greater Seattle’s largest hotel transactions over $50 million—all of which occurred in Seattle proper—include the 222-room Hilton Garden Inn and the 153-key Pan Pacific Hotel, which traded for $88 million and $79 million, respectively. The Kimpton Alexis Hotel, offering 121 guestrooms, fetched $71.6 million, and the 158-room Hotel Deca sold for $55 million. The weighted average price for hotel properties across metropolitan Seattle was $206,906 per key last year. The AC Bellevue changed hands for $372,000 per key.
Image courtesy of Marriott