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Market Summary Locational Analysis The property is located at 1900 N Northlake Way, which is uniquely situated within Seattle. Located within the city proper, at the southern end of the Wallingford neighborhood, the property is in an area that has historically been defined by marine-oriented industrial activity due to its location on Lake Union. This is reflected both in the site’s current use as a maritime-focused retail/warehouse/office complex, and also in the site’s current zoning of C1-40, which encourages auto-oriented retail or light industrial activity at heights under 40 feet. As the economy of Seattle, as well as much of the nation, began to shift in the post-war era toward a more service and skills based economy, the importance of industrial activity on Lake Union began to decline. Seattle’s primary coal gasification plant was located adjacent to the property until it ceased operations in the 1950s. The region’s primary east-west rail line passed adjacent to the site until it too went out of service in the 1970s. These two relics of Seattle’s industrial past have been transformed into two of Seattle’s most treasured assets: the remains of the gas plant were preserved as the award-winning Gas Works Park and the abandoned rail line formed the rightof-way for the Burke-Gilman Trail, one of the most heavily utilized urban bikeways in the United States. The presence of these assets, only steps away from this site, along with proximity to hubs of economic activity within Seattle like Fremont, the University of
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Washington, and South Lake Union, are critical to evaluating the site’s most appropriate use. Residential, retail, office, and hotel uses were studied for this site. Residential uses would benefit from the proximity to Gas Works Park and the Burke-Gilman Trail, flat bicycle commutes to Fremont, the University of Washington, or to South Lake Union/Downtown. Wallingford has a high degree of walkability in a vibrant community known for its quirky character also adding to its residential appeal. Office uses could benefit from the presence of major tech players nearby in Fremont, as well as the talent coming out of the University of Washington, but would be hindered by its out-of-theway location. Retail uses on a scale large enough to generate greater returns than the property’s existing use are limited by a lack of traffic and visibility. Finally, use as a hotel could benefit from the unique, outdoororiented setting and could capture business-oriented toward the University of Washington, but would likely command far lower income due to its distance from the central business district. After thorough evaluation, the project team determined that the site’s locational attributes and position within the market lend strongly to residential use, which could include apartments or condominiums. Team UW evaluated both options carefully, while weighing them against the stated goals of Teutsch Partners. Financing a condominium project can be challenging and requires more equity than financing typical with apartments. In addition, the increased capital risk affecting the condominium
selling process and potential litigation risks inherent with condominium development led Team UW to the conclusion that the inclusion of condominium did not match the objectives and risk profile of Teutsch Partners detailed in the RFP. Based on this understanding, Team UW concluded that the best decision for Teutsch Partners would be to move forward with the development of apartments, under the brand name of Gas Works Flats.
Site Location in Seattle