–The rapid growth of Seattle’s tech sector, fueled by giants like Microsoft and Amazon, has contributed to what is consistently noted as one of the best real estate markets in the country–
LOS ANGELES — iBorrow, a private commercial real estate lender, has provided a $5.1 million loan to convert a 25,430 square foot historic Seattle building into a luxury boutique hotel, as well as a $4.6 million loan to develop a 24,000 square foot office building space into a luxury boutique hotel.
Both properties are located in the Pioneer Neighborhood of downtown Seattle, located just minutes away from Century Link Stadium, the Seattle Waterfront and Pike Place Market. When fully renovated, the first property, located at the intersection of 1st Avenue South and South Washington Street, will be an amenity-rich 25-room luxury hotel featuring a restaurant, coffee shop, large music venue and full bar.
The second property, located at the intersection of Second Avenue and Yesler Way, will include 38 rooms, a wine bar, restaurant and lounge, two roof decks, an outdoor coffee bar and a basement entertainment venue.
“These properties are still a year from being fully renovated,” said iBorrow CEO Brian Good. “Seattle is one of the strongest real estate markets in the country, and given these buildings’ prime location, we believe that once the renovations are complete, the hotel revenue will be significant.”
“Because both properties are historic buildings, the planning and permitting process can be complicated and the borrower must take extra steps to preserve the properties’original structures,” Good added.
“However, we believe that the borrower’s extensive experience in repositioning different types of real estate properties would allow him to overcome any remaining obstacles. An additional benefit of converting these buildings is that they are both flexible and can be configured as office buildings. Our flexible, quick-completion loan program fit the borrower’s needs. Other lenders passed for certain reasons, but we felt the value was there. Our team was able to execute and close in just three weeks.”
The loan was originated in-house at iBorrow by Will McCabe.