Coeur d’Alene Urban Renewal Agency (ignite cda)

Atlas Waterfront Redevelopment

As part of a multi-disciplinary team, Heartland has been engaged by the urban renewal agency of Coeur d’Alene, Idaho, ignite cda, to prepare and execute on a market-based redevelopment strategy for the 70-acre Atlas Waterfront neighborhood. During the early conceptual phases, Heartland completed the initial market assessment and prepared a detailed financial analysis for the project. The financial analysis has helped to ensure that available funds, land sales, and tax increment financing will cover the substantial public infrastructure, amenities, and pre-development costs required for a complex, multi-phase redevelopment. From project inception, Heartland supported community outreach efforts and engagement with real estate developers while taking a lead role in managing the Request for Proposals (“RFP”) process including creating key offering documents. The RFPs provide a framework to evaluate developer proposals, establish a transaction process and deal structure to mitigate risk to the agency, as well as introducing mechanisms to ensure adherence to the development standards, supporting the creation of a new and vibrant waterfront district. Through Q3 2021, over 50% of developable land has been sold or put under agreement.  Heartland is currently collaborating with ignite cda on planning the remaining RFPs for the Atlas Waterfront neighborhood while continuing to work through ongoing negotiations with developers.

City of Seattle

Fort Lawton Development Strategy

Heartland, as prime consultant, led a multi-disciplinary team that advised Seattle’s Office of Housing regarding redevelopment options for the historic 34-acre Fort Lawton property. The consultant team’s assessment helped inform revisions to the existing Fort Lawton Redevelopment Plan and supported an increase to the production of workforce housing, affordable homeownership opportunities and permanent supportive housing for veterans and seniors who have experienced homelessness.

Snohomish County Cathcart West

Land Disposition

Heartland represented Snohomish County as advisor and broker in the disposition of the Cathcart West land assemblage in southern Snohomish County. Just 15 minutes north of Woodinville, Washington, the sprawling 145-acre property hosts forests, wetlands, hillsides, six different zoning designations and 42 acres prepared to be a landfill. Leveraging the firm’s network and various marketing platforms, Heartland conducted a marketing campaign for the property which led to the successful sale of the property to Pacific Ridge Homes for $40.3M. On behalf of the County, Heartland oversaw the transaction with Pacific Ridge Homes through closing.

Port of Seattle

Real Estate Strategic Plan & Implementation Support

Heartland was retained by the Port of Seattle to create a real estate strategy focused on defining the redevelopment economics and implementation strategies for properties within the Port’s current portfolio, as well as identifying non-port owned properties that the Port might consider acquiring and repositioning over the long-term. Heartland prepared property-specific and portfolio level financial analyses, tested alternative development scenarios and transaction structures, and identified specific steps that can be taken to execute the plan. To assess non-port owned properties, Heartland created a GIS-based tool that evaluated numerous property characteristics for every industrially zoned property in King County.

Heartland was then engaged to execute on the Real Estate Strategic Plan, which includes marketing several major industrial and maritime ground lease development opportunities through a Port-driven RFP process, supporting build-to-suit lease negotiations and providing financial analyses to inform new strategic initiatives.

King County

Convention Place Station Negotiation Support

Heartland, working collaboratively with Shiels Obletz Johnsen (“SOJ”), advised King County on the sale of the Convention Place Station property to the Washington State Convention Center (“WSCC”). As lead real estate and finance advisor, Heartland conducted real estate market analysis, financial alternatives analysis, and supported real estate negotiations on the nine-acre property in Downtown Seattle. The installment sale will raise $275 million over 30 years for transit, provide $5 million to the county’s affordable housing fund, and $4.5 million for public art.

Port of Tacoma

Parcel 14 Transaction Services

Heartland, in partnership with WA-REA, was engaged by the Port of Tacoma to analyze and market for lease one of the Puget Sound Region’s most significant industrial land assets. The Port’s objective in this project was to recruit developers and users to this 80-acre site that are supportive of the Port’s core businesses and able to leverage the Central Puget Sound’s trade based-economic sectors. The Heartland/WA-REA team used its knowledge of industrial land economics, the land development process and the industrial/logistics market to position and negotiate a long-term ground lease of this high value Port asset. Construction of the 1.6 million square foot logistics park started in spring of 2016.

Port of Bellingham

Waterfront District Redevelopment

Heartland LLC served as strategic real estate advisor for the Port of Bellingham’s Waterfront District, a 137-acre former Georgia Pacific pulp mill adjacent to downtown Bellingham. Heartland was engaged to develop and implement a market outreach plan to secure private investment into the District, key to helping transform the Port and City’s redevelopment vision into a reality.   With a focus on securing a master developer for the 20-acre initial phase, Heartland engaged in a two-stage marketing process, with the Port ultimately selecting Harcourt Developments from among nine (9) proposals. Heartland then assisted the Port in negotiation of a Master Development Agreement with Harcourt, which was executed March 2015.

Seattle Housing Authority

Yesler Terrace

Heartland was engaged by the Seattle Housing Authority (SHA) to provide strategic planning and real estate development feasibility services related to redevelopment of SHA’s Yesler Terrace property. Heartland’s work for SHA on the project included both technical market analysis and financial modeling as well as high-level strategic direction with respect to how to best position the project to support financial and organizational goals. Heartland’s work helped to secure a Choice Neighborhoods grant that was used to fund the first phase of the project, complete an Environmental Impact Statement and secure key regulatory approvals for the project in Fall 2012. Heartland also negotiated the $20 million sale of three blocks of land to Vulcan Real Estate.

Redman Family

9th & Thomas

Heartland was engaged in 2013 by the Redman Family, a third-generation Seattle family and founder of Sellen Construction, to conduct a highest and best use (HBU) analysis, financial feasibility analysis and to create and lead an implementation plan for the development of a long-held family assemblage in the heart of South Lake Union (SLU). The goal was to create a high-quality, legacy asset that contributes to increasing the vibrancy and richness of South Lake Union and creates value for future generations. As part of the implementation, Heartland led the formation of the development team, the financial analysis, deal structuring and capitalization (both debt and equity) for the project and is providing project management and ongoing asset management through construction and operations. The 170,000 square foot mixed-use boutique office development was completed in 2018, with Amazon leasing the office space and an eclectic mix of retail tenants leasing space on the ground floor.

Sumitomo Forestry Co.

Asset Underwriting & Investment Strategy

Heartland was engaged in 2015 by Sumitomo Forestry Co. (SFC), a Japanese conglomerate to conduct a financial feasibility analysis and structure a joint venture with a local partner for a multi-family development in the heart of Issaquah Highlands. This is SFC’s first multi-family development project in the United States and has incorporated Japanese-influenced landscaping and interior design elements, as well as environment and sustainability considerations. As part of the implementation, Heartland led the marketing of the investment opportunity, selection of local development partner and deal structuring. SFC and Trammell Crow Residential formed a development joint venture in 2018.

Samis Foundation

2&U

Heartland has worked with the Samis Foundation to leverage one of its largest assets at Second and University in downtown Seattle to better serve the Foundation’s educational mission for generations to come. Working closely with the Samis staff and board, the Heartland team evaluated numerous development scenarios and deal structures with a focus on mitigating near-term risk and growing long term cash flow. After extensive negotiation, the Samis Foundation executed a 99-year ground lease with Skanska USA, which is constructing the 750,000 square foot 2&U office and retail development on the property. Heartland continues to advise Samis on other assets in its portfolio.

Touchstone & Urban Renaissance Group

Corporate Recapitalization & Succession Planning

Heartland was engaged in 2012 to assist Touchstone Corporation in a recapitalization effort. Heartland facilitated a strategic process with Touchstone ownership and team to identify and evaluate succession-planning strategies that would enable a long-term sustainable path for the firm as well as provide an appropriate exit strategy for the founding partners. Heartland helped Touchstone prepare to go to market, including underwriting Touchstone’s team and portfolio of six (6) development assets ($1B in total development), defining an appropriate market process that respected the operations of the firm, developing collateral material, collecting and organizing due diligence material, and creating an investor communication and target plan. Heartland managed the recapitalization partner selection process. This transaction culminated in the acquisition of Touchstone by URG and retention of all current Touchstone employees, and earned recognition as NAIOP’s 2015 Deal of the Year.

Port Blakely Communities

Issaquah Highlands

In 2009, Port Blakely Companies formed a strategic alliance with Heartland to assist in the realignment of company resources to focus on timberland ownership and asset management. To pursue implementation of this objective, Heartland assumed the daily operations of the company’s development division, Port Blakely Communities, and provided strategic planning, financial analysis, transaction and venture structuring, and negotiations services. Port Blakely Communities substantially completed its remaining development activities and obligations at Issaquah Highlands and closed its office effective December 31, 2013. Heartland will continue to manage any remaining development activities and obligations until they are fully complete.

Joshua Green Corporation & Urban Renaissance Group

Strategic Business Combination & Advisory Services

Engaged in 2011, Heartland served as an advisor to Joshua Green Corporation (JGC), a large Pacific Northwest-based family office, seeking to restructure and expand its investment in real estate. Heartland evaluated and helped formulate JGC’s long-term sustainable real estate investment plan. As part of the implementation of that plan, Heartland performed valuation, due diligence, negotiation, structuring and advisory services for JGC’s acquisition of the Urban Renaissance Group (URG), a full-service commercial real estate operating company, based in Seattle. The transaction included a $150 million merger of JGC’s real estate equity and additional capital with URG’s proven operating platform in the western US. Heartland provided transaction management support for the acquisition (completed October 2012) and URG now manages a portfolio of over six million square feet of office and retail properties, making URG one of the largest, locally owned real estate firms in the region.

Harbor Properties

Recapitalization Advisory Services

Heartland served as capital advisor to Harbor Properties (“Harbor”), facilitating a strategic process with Harbor’s Management and Board to evaluate recapitalization alternatives that would provide existing shareholders with access to liquidity and raise additional growth capital to allow the new entity to grow its brand and platform. Heartland worked with Harbor to prepare to go to market, including underwriting Harbor’s team and organization, defining an appropriate market process, developing collateral material, and collecting and organizing due diligence materials. Heartland created an investor communication and target plan, and managed the capital partner selection process. Ultimately, it was determined that Harbor’s objectives would be best met through an outright sale, so Heartland facilitated the sale of Harbor to a combination of Urban Partners and AREA. The sale in early 2012 culminated in the creation of a combined entity, Harbor Urban, which has now evolved into Mack Urban.

REI

Headquarters Relocation

Faced with significant growth constraints, REI engaged Heartland in 2015 to evaluate its corporate headquarters in Kent, Washington, and explore relocation alternatives within the Puget Sound region. Heartland worked with the CEO and Senior Management Team to develop criteria against which to test both geographies and specific sites within those geographies. After an exhaustive search process, REI ultimately chose the Spring District in Bellevue, Washington as the preferred location for their corporate headquarters. REI closed on the property in 2017 and spent the next three years designing, permitting, and constructing an iconic, one-of-a-kind building. As COVID hit in 2020, REI made the difficult decision to sell the almost-completed facility, and again turned to Heartland to conduct a discreet outreach effort to find a buyer who could close quickly for maximum value. This resulted in the sale of the property to Facebook for $390 million in September 2020. Heartland also brokered the sale of REI’s 16-acre Kent campus to Bridge Development Partners in December 2020. Heartland is now serving as a tenant rep for REI in their search for decentralized, satellite office nodes across the region, having negotiated leases for a 70,000 square foot office building in Issaquah and a 30,000 square foot makers space in SODO.

Builders FirstSource

Industrial Disposition

Heartland represented Builders FirstSource as broker in the disposition of their 32-acre industrial property in Everett, WA. The property is situated on Everett’s Smith Island in the northeastern most corner and enjoys over 1,500 feet of waterfront along the Snohomish River estuary. To the west, the property is bordered by Highway 529 and is less than a mile from its junction with I-5. The four existing buildings on the property total approximately 94,000 square feet and are comprised primarily of warehouse space along with office and showroom spaces. As a result of Heartland’s successful marketing campaign strategies, the transaction was closed in 2023 for $14.71 million, nearly three times the appraised value.

Microsoft

Affordable Housing Initiative

Heartland is working with Microsoft to implement their $750M Affordable Housing Initiative. The initiative is a multi-year, multipronged effort to create innovative and replicable models to address housing affordability in the Puget Sound region, with a specific emphasis on Eastside markets, and beyond. Heartland is acting as both a strategic advisor as well as providing implementation support, including, but not limited to developer outreach, capital structuring, and opportunity underwriting and negotiation to facilitate the development and preservation of housing for people experiencing homelessness, low-income households (up to 60% of area median income) , middle-income households (60% to 120% of area median income). Since inception in 2019, Microsoft’s investments through this initiative have helped create or preserve over 7,900 units throughout the Puget Sound.

Diocese of Olympia

St. Luke’s Episcopal Church

Heartland represented the Diocese of Olympia and St. Luke’s Episcopal Church in the redevelopment of their 55,000 square foot property in the Ballard neighborhood of Seattle. The project will create approximately 300 units of housing in conjunction with a new facility for St. Luke’s. Advising on the financial feasibility of the project, Heartland helped St. Luke’s and the Diocese maximize the creation of onsite affordable family housing for the Ballard community. Heartland’s work included the negotiation of two ground leases which will maintain the Diocese’s ownership interest in the property over time and contribute to lasting financial stability. This became an exemplary project for churches throughout the nation who are seeking to capitalize their real estate assets to benefit their mission and community.

YMCA Seattle

Mineral Lake Camp

Since 2018, Heartland has been supporting the YMCA Seattle on a site search and land acquisition assignment to develop a major new overnight camp to accommodate expanded education programs for children and families in Washington. Heartland started the site search by canvasing every property within a two-hour drive from Seattle, leveraging our geospatial analysis capabilities, deep real estate experience and strategic thinking to quickly narrow down to a handful of properties, finally targeting an inspiring location for a YMCA mountain camp. Working closely with the YMCA’s internal team, legal counsel, architects and engineers, Heartland has helped the YMCA secure the property and managed the due diligence process. Heartland is assisting the YMCA on the financing strategy to create and preserve part of the property as community forest by partnering with local tribes, land trust and philanthropic foundations who has shared mission.

Lighthouse for the Blind

Surplus Property Disposition

The Lighthouse for The Blind, Inc. is a Seattle based not-for-profit social enterprise providing employment, support, and training opportunities for the visually impaired since 1918. Lighthouse engaged Heartland to help them evaluate and sell a surplus property in the north Rainier Valley neighborhood of Seattle. The 67,000 sf Property is almost a full city block zoned C1-40 and is well-positioned for townhomes, multifamily apartments, SEDUS, or mixed-use.  Heartland took the property to market in late 2018 and ultimately sold the site in early Q2 2019. Proceeds of this sale will be used to help the organization to better support Lighthouse’s mission in Seattle and beyond.

Comprehensive Life Resources (CLR)

Real Estate Advisory & Implementation

Heartland advised CLR, a Tacoma-based behavioral health non-profit, on its real estate portfolio strategy in support of CLR’s organizational mission and goals. Heartland performed an alternatives analysis to assess options to expand CLR’s inpatient programs for children while optimizing administrative functions over multiple locations.  As part of the implementation of the portfolio strategy, Heartland marketed and negotiated the sale of CLR’s 116,000 square foot office building and 230-stall parking garage located in downtown Tacoma. The sale transaction involved the leaseback of over 40,000 square feet for CLR’s administrative and clinical space needs and required a renewal and expansion for another tenant that entailed a 30,000 square foot lease, as well as turnkey tenant improvements to be completed.

University Book Store

Portfolio Analysis & Asset Disposition

Since 2015, Heartland has served as both a real estate advisor to and licensed broker for the University Book Store in the development and stewardship of an asset management strategy for its portfolio of owned properties. Heartland conducted a programmatic assessment of the Book Store’s retail operations, supply chain, and administrative footprint, and explored value-add repositioning opportunities within the portfolio. Our analysis led to recommendations to (1) close the underperforming Bellevue store, re-lease to new tenant, and sell the property fully occupied, (b) retain the Blakeley Street warehouse and transform into the central distribution hub for the enterprise; and (c) relocate the main store from The Ave to the parking lot, as an embedded program element of a broader redevelopment, monetizing high land values to pay for the cost of construction.

Seattle Opera

Seattle Opera at the Center

In 2014, Heartland was engaged by the Seattle Opera to assist with the consolidation of their multi-location operations into a permanent home that would act as a catalyst for several public-private partnerships at the Seattle Center, ultimately driving value and vibrancy to the heart of the arts and entertainment corridor of the City. Heartland assessed the Opera’s owned and leased real estate portfolio through a market, regulatory, physical, financial and legal lens. Heartland then assisted the Opera’s Board and Senior Leadership team with an alternatives analysis to arrive at a strategy that would both satisfy the Opera’s programmatic and operational objectives, but also optimize asset values, direct or indirect financial contributions to the project as well as minimize risk. Heartland, along with the full project team, worked successfully with a broad range of public and private groups to build needed support, including Seattle City Council and King County for financial support. Most recently, Heartland assisted the Opera in monetizing one of its key assets in the Uptown neighborhood in support of the completion of the $60M, 105,000 square-foot Seattle Opera At The Center permanent home.

In 2018, Heartland was engaged by the Seattle Opera to analyze alternatives for their scene shop facility in the City of Renton, following the decision by the Opera that it was not cost effective to continue to staff a dedicated scene shop crew and pay for the upkeep of the facility. Heartland assisted the Opera’s Board and Senior Leadership team with an alternatives analysis to arrive at a strategy that aligned with the Opera’s financial objectives. Following this analysis, the decision was made to sell the facility, and Heartland assisted the Opera in executing this transaction in August, 2019.

Weyerhaeuser Company

Headquarters Relocation

Heartland was engaged by Weyerhaeuser Company to evaluate its corporate campus in Federal Way, Washington, and to create and test a variety of alternatives for downsizing the footprint of their corporate headquarters. Upon making the decision that relocating to Seattle was the best option, Weyerhaeuser engaged Heartland in a brokerage capacity to source both on- and off-market opportunities that could accommodate the Company’s 800 FTE capacity requirement. Weyerhaeuser made the decision to lease all the office space at the 200 Occidental building, recognized as a finalist for NAIOP’s 2015 Deal of the Year. Heartland was also retained by Weyerhaeuser to sell the Federal Way campus, undertaking a multi-faceted marketing approach on a local, regional, national, and international level. Our efforts resulted in multiple offers to purchase the Campus, with the property being sold to Industrial Realty Group (IRG) in February 2016.

Antioch University

Advisory Services and Campus Disposition

Heartland worked with Antioch University to develop and implement a real estate strategy for its five-campus portfolio with locations on the West coast, East coast and Midwest. One of its campuses, Antioch University Seattle, was housed in an aging building in the Denny Triangle neighborhood of downtown Seattle. The Heartland team, in collaboration with architecture firm, Gensler conducted a real estate alternatives analysis and ultimately represented Antioch in a globally marketed, competitive sale of the 32,000 square foot property, which unlocked value in support of the University’s broader mission.  The sale closed in Fall 2015 and in parallel, Heartland assisted Antioch to identify, select and lease a new campus in downtown Seattle, where classes began in January of 2017.

The Polyclinic

Portfolio Strategy & Transactions Support

Heartland has worked closely with The Polyclinic to evaluate and implement their expansion plans in the First Hill neighborhood. Through this engagement, Heartland integrated the unique operational requirements of medical institutions into its site search and evaluation criteria. Our efforts for The Polyclinic included helping to rezone an existing asset to allow for 130,000 square feet of medical office space, partnering with an equity investor to acquire and lease the 200,000 square foot 7th and Madison building, negotiating a 99-year ground lease of the adjacent block to accommodate parking and future development/expansion, leasing 62,000SF of office space for a new clinic and selling two surplus assets for just over $24M. Heartland continues to provide ongoing real estate, capital, and strategic advisory services to evaluate and facilitate expansion opportunities throughout the Polyclinic’s portfolio and service area.

McLendon Hardware

Strategic Alternatives Analysis & Implementation Support

In 2015, Heartland was engaged by McLendon Hardware, a third-generation family-owned Seattle area hardware store chain, to assist them in a strategic alternatives analysis to maximize the value of their operating business and real estate as well as plan for succession. In 2017, Heartland’s work culminated in the sale of the hardware operating company to CNRG, a Memphis-based national hardware store, home center and lumberyard operator, and the disposition of the five-asset owned real estate portfolio to Suntrust with a leaseback to CNRG. As a result, the long treasured brand and company will continue to operate and a successful outcome for the shareholders was achieved.

Navos Mental Health Solutions (Navos)

Seattle Children’s Home / Center of Excellence

Heartland served as advisor, broker and owner’s representative to Navos, a King County-based behavioral health non-profit, in the sale of surplus property and construction of a new mixed-use inpatient and outpatient services campus. Heartland represented Navos in the sale of the approximately 2.55-acre Seattle Children’s Home site in Seattle’s Queen Anne Neighborhood in 2014. The residential property was sold to Toll Brothers for approximately $14 million, and the funds were combined with several other sources of equity and debt to fund the Center of Excellence for Children and Families at the former Ruth Dykeman Center Campus on Lake Burien. Heartland, in concert with Robinson Construction, served as owner’s representative on the projects and was responsible for project oversight and strategy, financial analysis, vendor procurement, project entitlements, negotiating and securing debt, and managing the design and construction process. The approximately $20 million residential, office and clinic development was recognized as NAIOP’s Community Impact Project of the Year in 2015.

Dunn & Hobbes

12th Avenue Marketplace

Heartland partnered with Liz Dunn to fund the recapitalization and expansion of the 12th Avenue Marketplace Project located within the Pike-Pine Corridor of Capitol Hill. Led by Dunn & Hobbes, this opportunity combined the recapitalization of approximately 70,000 square feet of existing retail, office and residential space with approximately 38,000 square feet of newly constructed office, ground-floor retail and penthouse residential units. Heartland is providing asset management services through the life of the investment, adding value through our in-depth understanding of local zoning, market dynamics, and project financing. Heartland successfully recapitalized the ~$11.6 million project. In 2015, Chophouse Row was recognized as NAIOP’s Mixed-Use Development of the Year and has been featured as a Case Study for Small-Scale Development by the Urban Land Institute.

gProjects

339 Development

Heartland collaborated with gProjects on the 339 Development, an 8-unit, new construction, urban for-sale townhome community located in Seattle’s North Capitol Hill neighborhood. The project architect was Workshop AD. Heartland successfully capitalized the ~$4.4 million project. Heartland provided project-level and asset management support, adding value through our in-depth understanding of local zoning, market dynamics, and project financing.  The 339 Development was completed in the Spring of 2015 and sales were completed in Summer of 2015.

Heartland LLC

Indigo@66 - Kavela

Heartland purchased this 12,119 square foot site in the Roosevelt Neighborhood of Seattle, near the University of Washington (UW) and across the street from the Whole Foods anchored Roosevelt Square Center. Heartland oversaw the design, planning, entitlement, marketing and sale processes. Entitlements included successfully obtaining approval of a Master Use Permit, shoring permit and building permits for 63-unit apartments, 4,280 square feet of commercial space and 60 parking stalls. The project was awarded one of the first Multi-family Tax Exemptions from the City of Seattle that provided substantial tax incentives for the project developer.

Dunn & Hobbes

Baker Linen Building

In early 2015, Heartland partnered with Liz Dunn of Dunn & Hobbes on a second investment in the Capitol Hill neighborhood in Seattle. The Baker Linen investment facilitated the recapitalization and repositioning of the iconic, three-story 19,000 square-foot existing building that includes a combination of office space and ground-floor retail. The building sits at the corner of East Pike Street and 11th Avenue, a vibrant pedestrian intersection adjacent to Chophouse Row, the latest addition to Dunn & Hobbes’ 12th Avenue Marketplace development. In April 2015, Heartland successfully recapitalized the ~$5.5 million project. Heartland is providing Asset Management services through the life of the investment.

gProjects

Malden Development

Heartland partnered with gProjects to assemble and purchase the land, and capitalize a 7-unit, new construction, urban for-sale rowhouse and townhome community, as well as the renovation of an existing single-family home. The project architect was b9 architects. Led by Graham Black, gProjects has been developing exceptional homes in urban Seattle neighborhoods, focused on niche, infill, sustainably constructed environments for over 10 years. Heartland successfully capitalized the ~$7 million project, and provided project-level and asset management support, adding value through our in-depth understanding of local zoning, market dynamics, and project financing. gProjects’ Malden Development was completed in Spring of 2016 and sales were completed in Summer 2016.