Seattle-Area Mixed-Use Project Lands $92M

Harvest. Rendering courtesy of Columbia Pacific Advisors

Columbia Pacific Advisors Bridge Lending has provided a $92 million loan for the construction of the retail phase of Harvest, a mixed-use project in the Hollywood District of Woodinville, Wash. This marks the company’s fourth loan for the development, resulting in the bridge lender’s cumulative investment approaching a total of $200 million.

Under Windward Real Estate Services’s ownership and developed by Greg Krabbe and Dan Wachtler, the project is slated for completion in the second part of 2024. Backen & Gillam Architects is also part of the project, while Jensen Design Architecture is handling interior design. Engineering firm CPH Consultants and landscape architecture company Brumbaugh & Associates are also part of the team.

The development will rise about 17 miles northeast of downtown Seattle and close to north Bellevue, Wash. Besides the on-site wine-tasting venues, retail offerings, restaurants and office spaces, Harvest will offer connectivity to outdoor activities, riverside bike paths and hiking trails.

Addressing suburban retail demand

At full build-out, Harvest is set to encompass more than 100,000 square feet of ground-up retail and 26,000 square feet of storage space, along with on-site parking, 70 townhomes and condominium flats, and 200 rental apartments. Additionally, the project will feature the 165-key Somm Hotel and Spa. Almost 60 percent of the project has already been preleased.

Upon completion, the development will also include a 650-stall, multi-level underground parking garage. Harvest is set to comprise a hybrid workspace along with various local wineries and two restaurant concepts. The addition of a marketplace, a florist, coffee shops and kitchen retailers is also in the books.

According to a recent Kidder Matthews Seattle retail report, suburban retail markets are experiencing more activity, due the ongoing shift toward remote and hybrid work. According to the same source, the direct retail vacancy rate stayed the same in the fourth quarter of 2022, remaining at 2.6 percent. However, the overall availability rate decreased by 10 basis points during the same time frame and by 50 basis points during 2022, ending the year also at 2.6 percent.

According to Kidder Matthews, there was a decrease in retail development after the pandemic, but it has remained consistent over the past two years, particularly with build-to-suit and pad developments.

The Hollywood District has received a second capital infusion and a total of four loans from Columbia Pacific Advisors to aid in its development. One of the loans, a $14 million acquisition loan, was granted in 2018 for the property. The most recent loan was given in 2021 to support the construction of 31 townhomes in the Woodinville Wine Village, which is the first residential project in the local market.