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Seattle, WA

Ivar’s Pier 54

Strategic marketing platform emphasizing a “sale-leaseback” for Ivar’s, Seattle’s best-known restaurant chain.

Posted In — Success Stories |
66,250
Rentable sq ft
$39.5M
Sale price
Location
Seattle Waterfront
Asset Type
Restaurant | Retail | Office
Disposition
Sale-Leaseback

Outline

Kidder Mathews was contacted by the owners of Seattle’s best known restaurant chains, Ivar’s. Kidder Mathews was invited to lay out a strategic marketing platform aimed at maximizing the value created from a sale- leaseback of Pier 54 on Seattle’s waterfront, and the Salmon House restaurant on Lake Union. The goal was to put forth a worldwide marketing effort emphasizing a “sale – leaseback” of these real estate assets, and manage the potential perception that the company was selling its operating business.

Kidder Mathews researched sale-leaseback rents and deal structure, analyzed the excellent credit of the future tenant (Ivar’s) and its impact on value and came up with a marketing plan that was approved by the partners/owners.

Ivar’s has been in business since 1938 and its founder, Ivar Haglund, has been credited as the King, Mayor, and Patriarch of the Seattle waterfront communities.

The History

Ivar’s has been in business since 1938 and its founder, Ivar Haglund, has been credited as the ”King,” “Mayor,” and “Patriarch” of the Seattle waterfront communities. Although operating with phenomenal success and growth initiatives, the partners of this privately held company decided it was time in their life to unlock some value from the real estate owned by this iconic company, without disturbing the successful and long-term restaurant operations.

Challenge

The primary challenges surrounding this assignment dealt with managing public perception and carefully marketing this sale – leaseback opportunity to an international investment base. Other challenges included the complexity of construction over water with hundreds of pilings at different stages in life span.

In addition, the Department of Natural Resources (DNR) submerged tidelands land leases needed to be assigned by DNR and approved by both Buyer and the State of Washington. Lastly, Pier 54 had a large office vacancy above the restaurant and some street-level retail that needed to be filled in order to maximize income and value upon sale. Leasehold interests in the property, and as environmental tests showed that anything around the area had the potential for contamination.

Results

Kidder Mathews worked closely with the Ivar’s PR and communication managers to unify the correct message given to the public, as well as buyers. In addition, Kidder Mathews worked closely with third-party vendors conducting due diligence and successfully leveraged its positive relationship with DNR to assign the subject land leases.

Lastly, the Kidder Mathews team brought on other Kidder Mathews, Seattle-based landlord office rep professionals and retail leasing professionals to simultaneously market the office and street level retail vacancy at Pier 54. After going to market and calling for offers, Kidder Mathews recommended selecting a separate buyer for each asset based on profile and likely success of closing. Both transactions closed shortly thereafter and the transaction has proven successful for the Buyers and Seller alike.

The goal was to put forth a worldwide marketing effort emphasizing a “sale – leaseback” of these real estate assets, and manage the potential perception that the company was selling its operating business.

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