Thanks to successful restructuring with a prominent Seattle investor group led by Jolene and Bruce McCaw, The Four Seasons Hotel and Private Residences Seattle is back on firm, long-term financial footing.
“The cloud over this project has lifted. Working closely together, our partners have created a great global solution to Four Seasons Seattle’s financial challenges,” Bruce McCaw said. “This landmark development is solidly back on track, giving our guests, residents, prospective residents, the local real estate market and Seattle community confidence that Four Seasons Seattle is positioned as the preeminent luxury address in downtown Seattle.”
Built during the height of downtown’s recent construction boom, the $180+ million project opened in the fall of 2008, just as Seattle’s real estate market started to visibly crumble. The project went into default a year later in December 2009, unable to meet the terms of its previous loans. The project faced possible foreclosure or bankruptcy, an untenable prospect to the investors, which include a number of prominent Seattle families and residents at Four Seasons Private Residences Seattle.
“To protect and preserve this true Seattle icon, our investor group remained firmly supportive throughout this lengthy process, and we all worked very hard to reach a great solution for the Four Seasons Seattle investors, homeowners, contractors and lender,” McCaw said.
Under the restructuring announced on April 26th, affiliates of the Seattle Hotel Group LLC, owner of Four Seasons Hotel and Private Residences Seattle, invested additional funds and negotiated new terms with its construction lender, Washington Real Estate Holdings, LLC, which has agreed to extend the senior debt on terms and rate more closely resembling conventional first mortgage debt.
Craig Wrench, president and CEO of Washington Real Estate Holdings, said, “As a local company, we wanted to ensure the long-term success of this great property, and we’re proud to be a partner in the solution. This puts an end to the uncertainty that’s been swirling around this project.”
Washington Real Estate Holdings, headquartered in Seattle, invests in real estate assets throughout the western United States.
The investor team also settled a lawsuit brought by building contractor Lease Crutcher Lewis and liens against the property by Lease Crutcher Lewis and its subcontractors. Terms of the settlement were not disclosed.
Bill Lewis, president and CEO of Lease Crutcher Lewis and an original and continuing investor in Four Seasons Seattle, said, “Everyone gave up something, which was challenging, but ultimately this is a reasonable outcome for all parties. This is a great project that opened at a challenging time in the market. This restructuring solution is good for the project and good for Seattle’s real estate market.”
McCaw added, “I would like to thank both Washington Holdings and Lease Crutcher Lewis for their constructive efforts to resolve these complex issues. There were so many moving parts to this deal; this is a remarkable outcome.”
Other details of the restructuring:
- The McCaws will lead a new ownership management board that will control the development. Original managers John Oppenheimer, Tom Alberg and Paul Schell support this management transition plan and remain investors. In addition, Alberg will participate in the new management board.
- Substantial financial reserves are in place to meet loan payments, homeowner association dues, capital improvements, etc.
- The McCaws’ team, led by David Brady, worked with restructuring specialists Ragan Powers at Davis Wright Tremaine and Michael Newsome of Zachary Scott.
Widely embraced by international business and leisure travelers and the Seattle community, the Four Seasons Hotel Seattle has been exceeding expectations. Management of the hotel, under seasoned general manager Ben Trodd, remains unchanged in the financial restructuring.
“Four Seasons Hotel Seattle is performing exceptionally well, and we are delighted that we have been welcomed back to Seattle in such a warm and positive way by the local community. We will continue to provide our guests with the uncompromising commitment to faultless service and attention to detail for which Four Seasons is proudly known,” Trodd said.
The 147 guest rooms and 36 private residences at Four Seasons Hotel and Private Residences Seattle are ideally situated in the cultural and business heart of downtown, just steps from Pike Place Market, Seattle Art Museum and the city’s best shopping, dining and entertainment venues.
Four Seasons Hotel Seattle offers the consummate Seattle experience. The modern waterfront hotel has a full spectrum of amenities that incorporate the best elements of the Pacific Northwest, such as sweeping views of Elliott Bay, poolside lounge, spa treatments that feature indigenous ingredients and a signature restaurant, ART, which just announced an exciting new menu that continues to highlight fresh, local ingredients.
Residents of Four Seasons Private Residences Seattle have access to 24-hour dedicated residential concierge service, valet parking, 24-hour room service and the hotel’s full spectrum of amenities and services. The private residences range from 1,300 square feet to more than 7,500 square feet and from about $1.5 million to more than $10 million. To date, 25 of the 36 private residences have been sold, closed and occupied.
Realogics Sotheby’s International Realty is selling the remaining residences. For more information or to schedule a private appointment, please call us at 206-910-5000, or send an email to firstname.lastname@example.org
More and more new construction projects have been slashing prices and looking to unload any remaining inventory as quickly as possible. It appears that the Four Seasons has joined this new trend and has released new pricing today.
The Four Seasons has sold 23 of 36 homes since completing construction a little over a year ago, and is now reducing prices as much as 47 percent. With an original price tag of $2,098 per square foot, the new pricing has brought the average down to $1,464 per square foot (remove the two massive penthouses from the average and the price per square foot is even less).
Here’s a summary on new prices:
Only 11 remaining units at the Four Seasons. That’s pretty good. The high-end market seems to be doing well here in Seattle. Both the Four Seasons and Fifteen Twenty-One are showing several closed sales this month.
Here’s the news release:
Four Seasons Hotel and Private Residences Seattle Announces Project Milestone
Property Demonstrates Continued Momentum with Recent Closings
SEATTLE – February 5, 2009 – Four Seasons Hotel and Private Residences Seattle today announced it has sold 25 of its 36 luxury private residences and officially closed on 22 of those sales. The major project milestone is valued at more than $120 million dollars in closings to date, most of which have occurred in the past several months since Thanksgiving.
“Despite current economic conditions, the steady demand for our unique residences is fueled by a combination of key elements, characteristic of the Four Seasons brand: exclusive, world-class locations, the most luxurious amenities, unsurpassed service and attention to the smallest of details,” said Ben Trodd, General Manager of Four Seasons Hotel and Private Residences Seattle. “Residents are effortlessly catered to and we provide the same levels of attentive, intuitive service that have become our hallmark throughout the world”.
Residents of Four Seasons have access to residential concierge service, valet parking, 24-hour room service and the hotel’s full array of amenities and services. Whether having Four Seasons cater an event at home or tend to their affairs while they’re away, residents live an effortless lifestyle. Available residences range from $2 million to more than $15 million.
That’s right! Now even you too can live at the Four Seasons without having to pay millions! Here’s a post for a 2 bedroom rental on Craigslist. Hurry, it won’t last long! …the link that is. Here’s a more reliable link.
Although we don’t have the finished photos of Olive 8’s penthouse, we’re having a little spat in the office about which one we would buy if money was no issue. So, we would like to hear what you have to see based on the floorplan and view photos shown below.
Click the floorplan to enlarge, and cast your vote.
Olive 8 Floorplan and Views
Four Seasons Floorplan and Views
To make sure we handle our dispute fairly, please only select ‘other’ if you know of another comparable downtown Seattle condo you would rather take other than two here. Let the games begin!
3rd & 4th Floor Spa, Fitness Center, & Pool
We crashed the Grand Opening today for the Four Seasons today, and mixed in with those invited from the media. General manager of the Four Seasons, Ben Trodd, gave us an informative and thorough tour of the main floor and amenities. As an unexpected treat, Roger Nyhus took us to the 11th floor where we were able to view the completed model unit which is currently on of the 11 remaining for an approximate $8.5 million.
Here’s just a few of the pictures.
The photos below shows what you’ll find after entering the door above and heading down the hallway to the right (or left in photo).
The next set of photos is what you would see by just coming straight into the entry and into the living area.
Remaining photos are for the southern side of the unit.
Unfortunately our photos of the powder room, utility closet, and laundry room didn’t turn out that well, so they didn’t make the post. We’ll post our additional photos of the hotel in the next day or two. Be sure to come back to check them out.
The Seattle Steam Company, located just west of the Four Seasons off Western Avenue, will be heating approximately half of Seattle with wood. Since 1894 the company has heated the Central Business District from coal to natural gas.
Apparently the company has recently broke ground on the new hybrid waste-wood and natural gas plant just recently and will be able to provide 60% of energy from wood.
Combusting waste wood closes the “carbon loop,” said Patrick Mazza, research director for Climate Solutions, a Seattle-based research and advocacy groupe.
“You’re contrasting a fuel source that has been notably volatile in terms of price with a local, renewable fuel source,” he said. “It’s one of those things that we know to do well, but that we’ve kind of forgot during the age of cheap energy.
It’s been a couple weeks since we last posted photos of the Four Seasons, and they got a ton of hits! Here are a few of the remaining photos which mostly cover several of the amenities. Enjoy!
Thankfully, unlike every other day over the last several, Friday was perfect for visiting the new Four Seasons & Private Residences. Sales representative Molly Gleason met me, April, and Justin out front to give us hard hats and inspect our boots (April’s were “cute” Chooka rainboots with pictures of skulls, hearts, sparrows, and lucky horseshoes). So, here’s some of the highlights…
Our journey began by going through the residence’s private entrance, which passed by the soon to be, Fran’s Chocolates (thank you Molly for the delivery: yummy). We then passed through the lobby, and to the ART restaurant where Kerry Sear from Cascadia in Belltown will take the position of Executive Chef.
Art Restaurant and Lounge will be a Northwest-inspired eatery featuring a casual bar-style counter area in the middle of the restaurant. There will be 65 tables and private dining room which all have extraordinary western views.
We then traveled up the service elevator to the 20th floor to take a look at one of the 2-story units. Since the unit is spoken for, we cannot post any photos. But I assure you that it is on top of the world.
After soaking in some sun on #2002’s extra large deck, we traveled to the 18th floor where there is still a couple units available for you to make an offer.
Eastern facing units also had impressive city views with plenty of light. As you can see from the photo below, the floorplan allowed the windows to stick out a few feet. So, you are able to clearly see down 1st Avenue.
Curious to know what $15,800,000 looks like? Since it was difficult to really take pictures that paint the picture properly, here’s a comment that Molly made that may give you a good idea. She said, “This is where your additional quarters would be if you had a private staff.” The unit takes the entire half of the floor, has a 2nd kitchen for the “hired staff,” features 3 separate decks, and 6 bedrooms.
If we didn’t have to consider load time for photos on the Internet, we’d post more of this unit. But, if you’re interested in buying, give us a call and we’ll arrange a showing.
If $15.8 million is just over your budget, unit #1102 is still available and very much of a favorite. This home faces west, and located in the south corner of the north side of the horseshoe shaped high-rise. Take a look at this awesome living space below.
So, that’s enough for now. We’ll be sure to post a follow up of some amenity photos including a gorgeous spa, grand ballroom, and design textures. Price list is available for the 11 remaining units of the 36 total.