Meriwether acquired the Nortek industrial campus in October 2017 from Huntair Properties LLC. The warehouse/manufacturing property is located in Tualatin, Oregon. It includes three buildings constructed in stages (1991, 1994 and 2006) and contains 330,000 rentable square feet on 25 acres of land. The property is 100% leased to Nortek Air Solutions, LLC.
Meriwether acquired Russell Hall in September 2016 from Unico Properties. The property is located adjacent to the main campus of the University of Washington at 1414 NE 42nd Street. Built in 2009, the property includes 6,000 square feet of ground floor retail, 38,000 square feet of office space on three floors, 30 apartment units and 120 subterranean parking stalls on 0.37 acres of land. Major tenants include The University of Washington, the National Bureau of Asian Research, and Oculus (Facebook). The commercial portions of the property were 100% leased at acquisition. The residential portion was 93% leased at acquisition.
Meriwether broke ground on the Hugo House in May 2016 on behalf of Hugo Properties. The mixed-use development consists of a six-story building including a 10,300-square foot community center (Hugo House Writer’s Center) and 1,500 square feet of ground level retail space. Parking for 95 vehicles will be located below grade. The upper floors include 80 apartment units. The project helps the Hugo House, a nationally acclaimed non-profit (www.hugohouse.org), continue to serve local writers and the arts community for decades to come by providing new “place for writers.” Project completion is anticipated by 4Q 2017.
Meriwether broke ground on the A&D/10 Clay project in October 2017. The redevelopment includes comprehensively renovating the existing two-story historic landmark building and adding a new penthouse to it, which in total will provide roughly 32,200 square feet of commercial office space. On the adjacent surface parking lot, Meriwether is building a 62-unit apartment project with approximately 7,400 square feet of ground floor commercial space. The project also includes one level of below-grade parking that will accommodate 60 stalls. Project completion is anticipated in 1Q 2019.
Meriwether Parters acquired the 2501 Eastlake property in July 2015 in an off-market transaction. The property includes a 7,400 square foot retail building located in the Eastlake neighborhood of Seattle, WA. The building is situated on a 11,000 square foot parcel zoned NC2-40. In addition, to the west of the building is a 7,000 square foot parcel zoned L2 currently used as a surface parking lot. At acquisition, the property was 97% leased to five commercial tenants.
Meriwether acquired the 3305 NW Aloclek building in July 2015. The property is a two-story suburban office building located in Hillsboro, Oregon. Constructed as a build-to-suit in 1997, it contains 40,000 square feet of rentable building area. Meriwether acquired the building vacant and subsequently leased the entire building on a long-term basis to Virginia Garcia Memorial Health Care in July 2016.
Meriwether acquired Overton in August 2014 in an off-market transaction. The property encompasses a full city block (40,000 square feet) located on the north side of Portland’s Pearl District at NW Overton Street and NW 14th Avenue. The improvements include three single-story structures containing 44,000 square feet. The prior owner substantially improved the buildings and converted the use from industrial to creative office and event space. The buildings feature high ceilings with exposed trusses, open floor plans, and abundant natural light creating a highly desirable modern environment for creative office tenants. At acquisition, the property was 95% leased.
Meriwether acquired The Gregory in February 2013. The property is located in the Pearl District of downtown Portland. The acquisition consisted of the office and retail condominium portion of The Gregory and included 16,000 square feet of ground floor retail space, 31,000 square feet of office space on three floors, and 51 parking stalls. The art-deco building sits on a full city block and was built in 2001. The office and retail condominum was 96% leased upon acquisition.
Meriwether acquired the Market Street Warehouse in September 2005 from Associated Food Stores. The property consists of 11,000 square feet of office, 60,000 square feet of refrigerated warehouse, 30,000 square feet of freezer warehouse, and 148,000 square feet of dry warehouse space on 21.46 acres of land. The property was 21% leased at the time it was put under contract. Prior to closing, Meriwether leased the 30,000 square feet of vacant freezer space. Subsequently, Meriwether leased an additional 86,000 square feet of dry warehouse space. After converting the project into a condominium, Meriwether sold the dry warehouse and office condominium for $6.9 million in December 2007. This transaction leaves the partnership with 90,000 square feet of leased refrigerated/freezer space valued in excess of the sold portion.
Meriwether acquired Columbia Commons in December 2003. The single-story office/medical building located in St. Helens, Oregon (30 miles north of Portland). At the time of closing, the property was 70% leased, with Legacy Health Systems and various divisions of the State of Oregon as the main tenants. Columbia Commons was purchased on a 9.2% cap rate based on in-place rents at a price under 50% of replacement cost. Since its acquisition, Meriwether renewed virtually all existing leases and leased an additional 10,000 square feet of vacant space.
Meriwether acquired the Kendall Lake building in December of 2011. The two-story office building is located east of Seattle in Snoqualmie, WA. It was 68% leased at closing with the remaining vacant space in shell condition. During due diligence Meriwether began negotiating a lease for the remainder of the building with King County. After executing the King County lease, Meriwether backfilled several subsequent vacancies. Meriwether sold Kendall Lake in October 2017 to a private investor for $13.05 million, generating an IRR of 21% and a 2.63x equity multiple over the 71-month hold period. The building was 100% leased at the time of sale.
Meriwether acquired 215 Columbia in September 2012. The 5-story office building is located in downtown Seattle at the corner of 3rd and Columbia. It was 96% vacant at the time of acquisition. Prior to closing, negotiations were underway with SEIU 775 NW for the vacant 50,000 square feet of office space. The tenant signed a long-term lease in December 2012. Meriwether sold 215 Columia in June 2016 to SEIU 775 NW, generating an IRR of 19% and a 1.8x equity multiple.
Meriwether acquired 1440 NW Hoyt in an off-market transaction in October 2014 from an owner-user. The site included a 40,000 square foot two-story industrial building and an adjacent 4,300 square foot parking lot. As part of the acquisition, Meriwether also acquired a 72,000 square foot warehouse in Portland’s Guild’s Lake industrial district. Plans were developed to renovate and expand the existing 40,000 square foot building to include 75,000 square feet of creative office space on six floors. Just prior to pulling the building permit, an unsolicited offer to purchase the site was received from an institutional apartment developer. The decision to sell the site, rather than move forward with the redevelopment, was based on generating strong returns without incurring construction, financing, lease-up or capital market risks. Meriwether sold the parking lot in February 2016 and the 40,000 square foot building in June 2016. These sales, combined with the earlier sale of the Premier Industrial building in October 2015, generated a combined IRR of 31% and a 1.4x equity multiple over the 21-month hold period.
Meriwether acquired Tansbourne Commerce Center in October 2011. The 4-building project consists of three office buildings and one flex building and is located in the Sunset Corridor submarket of greater Portland. Two of the office buildings and the flex building were 100% leased and a 50,000 square foot building was vacant at the time of acquisition. Overall, the project was 72% leased at acquisition. During the hold period, a long-term lease with Grass Valley was executed for the vacant 50,000 square foot building and two buildings totaling 80,000 square feet were re-leased to Kaiser Health and Nike. Meriwether sold the portfolio in March 2016 to an institutional real estate fund for $31 million, generating an IRR of 28% and a 2.6x equity multiple over the 51-month hold period.
Meriwether acquired the 19th & Mercer development site in August 2012 with construction beginning immediately thereafter. The 18,900 square foot site is located at the intersection of 19th Avenue East and East Mercer Street in the Capitol Hill neighborhood of Seattle. The 4-story development project included 50 market-rate apartment units above 6,000 square feet of commercial space and 47 parking stalls. Meriwether delivered the project to the market in November 2013 and acheived stabilized occupancy in February 2014. Meriwether sold 19th & Mercer in December 2015 to a private investor in an off-the-market transaction for $25.2 million, generating an IRR of 34% and a 2.4 equity multiple over the 40-month hold period.
Meriwether acquired the industrial building at 2850 NW 31st Avenue in an off-market transaction in October 2014 from Premier Press, an owner-user. The 72,000 square foot property is located in the Guild’s Lake Industrial Sanctuary just 2.5 miles outside of downtown Portland. The Seller leased the property back at closing for eight months in order to build a new headquarters. Meriwether sold the vacant building in October 2015 to a corporate owner-user generating an IRR of 52.8% and a 1.50x equity multiple.
Meriwether acquired 4550 SW Macadam Avenue in December 2010 from a private investor. At the time of acquisition, Fiserv EFT occupied the entire building. Meriwether subsequently extended the Fiserv EFT lease for five years. Meriwether sold the buiding in October 2015 to a private investor for $12.25 million, generating an IRR of 28% and a 2.9x equity multiple.
Meriwther acquire the Pacific Building in December 2007. The 23-story office building is located in downtown Seattle and includes 219 parking stalls on floors two through seven. The building suffered from an image problem as the prior owner was not inclined to upgrade the common areas or offer competitive TI packages. Immediately after closing, a new third-party property management team was hired, all vendor contracts were re-bid, operating costs were significantly reduced, the parking contract was re-bid (increasing parking revenue by 50%), and a significant renovation of the interior common areas and exterior was implemented.
Meriwether acquired Wallingford Plaza in June 2011 from Banner Bank. The 3-story commercial building with ground floor retail and two floors of office is located in the heart of the Wallingford neighborhood of Seattle. At the time of closing, the building was 75% leased (including a new lease with Walgreens for the entire ground floor retail space and a portion of the second floor). The base building upgrades and tenant improvements associated with the new Walgreens lease began immediately after closing with the tenant taking occupancy in March 2012. In 2013 two additional office leases were signed, bringing the building to 100% occupancy. Meriwether sold Wallingford Plaza in December 2013 to an institutional investor generating an IRR of 24.6% and a 1.71x equity multiple.
Tanasbourne Corporate Park is a one-story office building located in Hillsboro, OR. Just after closing on the acquisition in December 2010, Meriwether put the property under contract to sell to Umpqua Bank. This sale closed in January 2011 at $3.65 million and generated a 2.1x equity multiple.
Meriwether acquired the Central Building in October 2005. The 7-story office building is located in downtown Seattle and was 65% leased at the time of acquisition. The property was not well managed, showed poorly, and suffered from poor tenant relations. The investment was predicated on buying a well-located building at a fraction of replacement cost in a rising office market. We immediately brought in a new, third-party on-site management team, re-bid all vendor contracts, significantly lowered operating costs, implemented a new tenant relations program, and made significant upgrades to the common areas. With the building looking and operating better, Meriwether aggressively marketed the available space and, within 12 months of closing, increased occupancy to over 98%. Meriwether sold the Cental Building in August 2007 to an institutional investor for $43.1 million generating an IRR of 81.5% and a 2.9x equity multiple.
Meriwether acquired Blanchard Plaza in April 2004. Blanchard Plaza is a 15-story office building located in downtown Seattle. At the time of acquisition, the property was 86% occupied, with over 139,000 square feet leased to the GSA on a long-term basis. Over the first 18 months of ownership Meriwther completed a $5+ million tenant improvement project for the GSA and significantly upgraded the building’s image with a renovation of the lobby, elevator cabs, and common area hallways. Meriwether executed over 64,000 square feet of leases at rates above proforma to significantly reduce the rollover risk. Meriwether sold Blanchard Plaza in March 2006 to an institutional investor generating an IRR of 61.4% and a 2.45x equity multiple.
The single-story office building is located in Salem, OR. When acquired in May 2005, the building was vacant except for a 100,000 square foot short-term lease back from the seller. The investment was predicated on acquiring the building at a fraction of replacement cost and redeveloping and re-leasing the building at competitive rates to government and large private sector users. Following the acquisition, we immediately brought in new third-party property management, lowered operating costs, and began developing a renovation plan for the common areas of the building including three new entrances, a new great room and new common areas. We completed ~$1.8 million of base building improvements, converted 31,000 square feet of warehouse space into office space, and executed 200,000 square feet of new leases to stabilize the building at 85% occupancy. In December 2011 we sold the building to an institutional investor resulting in an IRR of 7% and a 1.4x equity multiple.
Meriwether acquired the GSA Building in February 2003 from a bankrupt owner. The single-story office buiding was 100% leased on a long-term basis to the GSA. At the time of acquisition, the building suffered from virtually non-existent property management which resulted in deferred maintenance and poor tenant relations. After improving tenant relations by hiring an on-site property management staff, making cosmetic improvements to the building, and lowering operating costs, Meriwether sold the building in August 2005 to a private investors generating an IRR of 23.8% and an equity multiple of 1.64x.
Meriwether acquired an existing Red Lion hotel in August 2005 with plans to extensively renovate the asset and re-brand the hotel. Prior to closing, Meriwether finalized a $5.5 million renovation plan and signed a franchise agreement with SpringHill Suites by Marriott. The investment was predicated on the strong Boise economy, the improving Boise hotel market, a best-in-class operator/partner, a realistic renovation plan, and the solid Marriott brand. Meriwether completed the renovation on-budget in February 2006. Over the next year, Meriwether re-established the hotel in the market and implemented an aggressive marketing campaigns for corporate and other group business. Meriwether sold the hotel in September 2007 to a REIT after determining increased competitive supply would severely dampen near-term operating results. The sale generated an IRR of 9.8% and a 1.21 equity multiple.
Meriwether acquired the Market Street Warehouse in September 2005 from Associated Food Stores. The property consists of 11,000 square feet of office, 60,000 square feet of refrigerated warehouse, 30,000 square feet of freezer warehouse and 148,000 square feet of dry warehouse. The building was 21% leased at the time it was put under contract to purchase. After leasing up the vacant space, Meriwether converted the project into a condominium and sold the dry warehouse and office portion for $6.9 million in December 2007. This transaction allowed for a complete return of capital plus a 10% preferred return.
Our primary geographic focus is Seattle and Portland.
We invest in office, mixed-use, multi-family and industrial properties. Others considered on a case-by-case basis.
$5-100 million (total project costs).
All cash, cash and new debt, or cash and the assumption of existing debt.
Income Producing Properties: We target well located assets with the opportunity to maximize value through creative capitalization, repositioning, and/or re-leasing plans.
Development: We target opportunities where patient capital is required to take advantage of market conditions, work through the design and permitting process, and ultimately build on the site or redevelop existing assets.
2-10 years (flexible).
Core, Core+, Value-add, and Opportunistic.