NYC Developer Silverstein Bets on Rising Wealth of Seattle’s Neighbor

Silverstein Properties has taken full ownership of Avenue, a luxury condo and hotel project in Bellevue, Washington, signaling a significant investment in the Pacific Northwest market. The development features two luxury condo towers, with approximately 40% of units sold at prices exceeding those of comparable nearby buildings, including a penthouse sale setting a state record for price per square foot. This move reflects Silverstein's bet on the continued growth and wealth concentration in Bellevue, a city neighboring Seattle and home to numerous major corporations.

Analysis

Silverstein Properties' assumption of full ownership in the "Avenue" luxury condo and hotel development in Bellevue, Washington, signifies a strategic and confident investment in the high-growth Pacific Northwest market. The project, which includes two luxury condo towers and an on-site InterContinental Hotel, has demonstrated strong market reception, with approximately 40% of its condominium units sold at average prices substantially outpacing those of new neighboring buildings. A notable $9 million penthouse transaction set a new state record for condominium price per square foot, underscoring the robust demand within Bellevue's affluent demographic, a region characterized by its high concentration of wealth and proximity to major global corporations. Silverstein's firm taking complete control of the development last year, shortly after the hotel component commenced operations, further solidifies its bet on the sustained economic vitality and appeal of this specific submarket.

Key Decisions for Investors

• Investors should recognize the strong underlying demand and pricing power in Bellevue's luxury real estate sector, indicated by Avenue's sales performance, which may present opportunities in similar high-end residential or mixed-use projects in comparable affluent US tech hubs.
• Silverstein Properties' decision to consolidate ownership reflects a strong conviction in the project's future profitability and the continued economic expansion of the Bellevue area, signaling a potentially favorable environment for real estate asset appreciation in the region.
• For InterContinental Hotels Group (IHG), the association of its brand with a high-profile, successful luxury development in a prime location like Bellevue enhances brand prestige and supports the performance of the specific hotel asset, although the article does not provide direct financial metrics for IHG from this venture.