The developer that turned the old Holiday Craft Store property into the fancy pants 19th and Mercer mixed-use development has turned his initial $1.85 million investment into a $25 million check.
Joel Aslanian of Merriwether Partners has sold the property home to 50 apartments above Linda Derschang joint Tallulah’s as well as Cone and Steiner, The Herbalist, and Hello Robin cookies for $25.1 million, according to King County records.
The buyer is a real estate investment group out of Tacoma, the Puget Sound Business Journal reports. The PSBJ notes the swank Capitol Hill property came at a premium due to the 6,200 square feet of retail in the development project.
The sale comes just two years after the four-story building completed construction and opened with Derschang’s Tallulah’s as its centerpiece in late 2013 and ushered in a new wave of development activity on this sleepy side of Capitol Hill. Lake Union Partners, who helped shape the retail mix at 19th and Mercer, is now developing two corners of the blocks at 23rd and Union. Meanwhile, more development is moving forward on 19th Ave E on the northwest corner at Mercer.
While the additional commercial space helped boost the price, the project’s success likely also owes some of itself to the 19th Ave neighborhood it has risen in with its eclectic mix of independent retail, educational facilities, health care, apartments, and early 20th century, single-family homes. The fully-leased building’s $1,300 per month and up rents probably didn’t hurt.