The ambitious project to create a seven-story, 260-unit mixed-use apartment project while preserving a portion of the old auto row building at 714 E Pike is temporarily “on hold” and as a “backup” has been put up for sale, the company behind the development tells CHS.
“The equity for the 714 E Pike project is one of our closed-end funds that includes a mixture of both ground-up development projects as well as existing apartment properties we’ve acquired,” a Wolff Company representative tells us. “It turns out the fund’s ‘end date’ is earlier than we’d originally anticipated, and the timeline for the BMW site to be constructed and leased up is simply too long compared to the rest of the properties in the fund.”
[mappress mapid=”30″]CHS looked at the final design for the apartment, retail and restaurant project here.
The representative for the developer says the Sunset Electric project at 11th and Pine it paid $6.7 million for last year is part of the same funding pool but will be completed in time to satisfy investors.
The Wolff representative said the company is working to recapitalize the BMW project and has listed it for sale only as a contingency should no source of financing be found. The Arizona-based Wolff paid $14.9 million for the BMW property in 2012.
The delay could be a reprieve for sports drink start-up Golazo that has been using the old BMW building as its headquarters. There’s no such delay coming for neighboring Bill’s Off Broadway as the project slated to rise above its corner at Pine and Harvard will continue on its current schedule according to developer Denny Onslow. Onslow also tells us he’s hopeful that Bill’s owner Don Stevens will ultimately have a stronger business in the space following the construction of the new building.
Meanwhile, Wolff is busy with several other multimillion projects across the city including a seven-story West Seattle project, an 85-foot apartment building
17-story apartment tower (subscription required) near Amazon near 9th Ave N and Republican and this massive 6.2 acre, 5-building proposal (subscription required) in Columbia City.
The Wolff representative tells CHS the company does have other funds but “we currently don’t commingle investment vehicles.”
“Our strong bias is to proceed with constructing the project,” the Wolff rep says, “but because of our fiduciary responsibility to our fund investors we do need to have a backup plan as we pursue the recapitalization.”