Carl Marks Real Estate Group Develops, Sells Major Puget Sound Project, Sets Several Records

Business Wire, Feb 16, 2005

NEW YORK -- Martin Schiffman, Managing Director of the New York-based Carl Marks Real Estate Group (CMRE), announced today that several records were set as a result of the development and recent sale of Cliffside, a major apartment community in Gig Harbor, Washington. At $26 million, or approximately $93,000 per unit, the sale was the highest ever recorded for a rental project in the history of Pierce County and the largest multifamily project ever completed on the Gig Harbor Peninsula.

CMRE, along with long-time partner Paul Challancin of Monroe, Washington, built Cliffside between 1995 and 1996. The partnership purchased Cliffside, originally a 54 unit complex on four acres and 10 adjacent undeveloped acres, from the foreclosed property portfolio of an Oregon Savings & Loan. Subsequently, the group purchased an additional 17.5 acres contiguous to the original site, which granted the assemblage more than 700 lineal feet of beachfront along the Tacoma Narrows. The partnership then received site plan approval from the Pierce County Planning Commission for the development of 225 new luxury apartment units, which included a modernization plan for the original 54 units.

With the completion of this sale, John Hallgrimson of the CBRE office in Seattle, who acted as the partnership's broker, now holds the multifamily price record for all three Seattle/Tacoma Metro counties of King, Pierce and Snohomish.

Cliffside is a 279-unit luxury rental community situated in a natural setting on a 140 foot bluff overlooking Puget Sound and Mount Rainier. It is located a quarter mile from the Tacoma Narrows Bridge. The project is six miles from downtown Tacoma (the county seat of Pierce County), less than four miles from the center of the Town of Gig Harbor, 23 miles from the City of Bremerton, and approximately 30 miles from Seattle. Convenience to each of these economic centers, while being located in a low density natural surrounding with spectacular views of the Sound and Mount Rainier, makes Cliffside a premier residential environment. Most of the apartments enjoy spectacular views of Puget Sound and Mount Rainier, jogging trails and lush landscaping. The construction of a second Tacoma Narrows Bridge, currently underway, will significantly enhance the project's accessibility for area residents.

"Cliffside was sold at a very aggressive cap rate, and we had no shortage of buyers for the project," said Schiffman. "The term unique is used regularly in our business when real estate is sold, but this was truly the case with Cliffside - both in terms of the quality of the environment and the records the project set."

Cliffside was characteristic of the Carl Marks Real Estate Group's subspecialty in value-added urban land strategies. This focus has also resulted in other projects such as the assemblage and re-zoning for Riverlofts in New York's Tribeca neighborhood, and the assemblage and re-zoning for the Greater Philadelphia World Trade Center, a 4.0 million square foot project currently under development.

The Carl Marks Real Estate Group is part of Carl Marks & Co. Inc, the New York diversified investment company whose financial specialties include a variety of complementary businesses including venture capital, corporate acquisitions, specialized money management and real estate investment and development. Today, Carl Marks has interests in over 80 companies and a nationwide real estate portfolio in the U.S., representing total assets of over $1.5 billion. Carl Marks, through a specialized division, also provides workout services and financing for underperforming companies.