Business

California firm buys Tacoma’s Hanna Heights, a former Prium development

Hanna Heights, a downtown condominium built by now-bankrupt Tacoma developers Tom Price and Hyun Um, has a new owner.

San Diego-based Pathfinder Partners bought Hanna Heights through a court-appointed receivership sale, the company announced Wednesday. It is Pathfinder Partner’s sixth purchase in Washington state and the first in Pierce County, and it paid $7.05 million for the Tacoma property.

Price and Um’s Prium Cos. built Hanna Heights and the nearby Chelsea Heights in 2007. The two were the only brand new retail and residential properties Prium began among the at least five it planned downtown. Each is named for a daughter of each of the men. Chelsea Heights was bought by San Diego-based ColRich in May 2013.

Price and Um have been in bankruptcy court since 2010, fighting with creditors over hundreds of millions of dollars in personal guarantee debt related to their real estate business. Their real estate empire is held in a web of individual limited liability companies, each of which own just one or two actual properties.

Many of Prium’s subsidiary LLCs also have gone through their own bankruptcy reorganizations, Hanna Heights included. Under Hanna’s court- and creditor-approved bankruptcy plan, the building had to be sold. A similar requirement can be found in other Prium subsidiary bankruptcy plans, including that for downtown Tacoma’s Winthrop hotel building.

Hanna Heights, at 415 Sixth Ave., is six stories with 35 units. It was built as condominiums but converted to rentals as the economy crashed. It’s comprised of 24 one bedroom / one bath units; 10 two bedroom / two bath units; and one three bedroom / two bath. Seven of that total are two-story penthouses.

All units have hardwood flooring with radiant heating, granite countertops, stainless-steel appliances and washers/dryers. Hannah Heights also has a secure, ground level parking garage with 44 spaces, along with private storage units.

The building has no vacancy, Pathfinder said in the release.

The company will continue to operate Hanna Heights as rentals, said Pathfinder’s senior managing director Lorne Polger, until converting it back to the condos it was built for makes financial sense.

“We have been tracking Hannah Heights for more than two years and are pleased to finally be able to conclude this acquisition,” he said in the release. “The Seattle/Tacoma metro area is a job-creating machine, and we are attracted to the new construction, urban location near many shops and restaurants and views of the water and Mt. Rainier. Additionally, the project provides dual exit strategies – in the future, we can sell individual condominiums or market the property as a stabilized rental community.”

Pathfinder plans several improvements to common areas, including lighting, paint, updating the gym and upgrades to the leasing office and lobby.

Pathfinder’s other purchases in Washington: The Sanctuary, a 12-unit townhome in Seattle’s Capitol Hill; Chelsea Courte, a 29-unit condo in Kirkland; Redondo Terrace, a 78-unit apartment in Federal Way; Florera, 45 units within a 59-unit condo in Seattle’s Green Lake; and the Anna, an 18-unit apartment in Redmond.

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