UW hopes to build hundreds of condos for faculty

The University of Washington wants to build hundreds of condominiums and apartments for faculty in an attempt to combat Seattle's pricey housing market and create a more vibrant campus.

The UW provides plenty of student housing but has never offered homes to faculty and staff — aside from a mansion for the president. But it hopes to transform two University District parking lots it bought last fall into six stories of multifamily living.

UW officials say they're just starting to evaluate options. But they've negotiated access rights with at least one neighbor and have helped launch a stand-alone nonprofit that may spearhead development.

Jim Rose, a private U District developer, estimates the two UW lots should yield about 250 condos at a construction cost of about $50 million.

The UW is considering a separate development in a former Navy barracks it owns in Sand Point Magnuson Park, which could yield 150 more units.

And at least one other local institution — Seattle Pacific University — is contemplating its own move into real estate.

Some universities in high-priced housing markets such as California already offer faculty housing. Stanford University owns about 900 units of campus housing, including homes, condos, townhomes and a few rentals. It also offers housing breaks for those living within 15 miles of campus.

Stanford's housing helps promote a collegial environment and bring students and faculty together more often on campus, said Jeff Wachtel, senior assistant to Stanford's president. It also helps Stanford compete for faculty with universities in cheaper markets such as Texas.

"At the very least, it sometimes neutralizes the housing issue because housing is so expensive here," Wachtel said.

In Seattle, Stephanie Andrews, 34, an assistant professor of digital arts who started working at the UW in 2004, said she spent two years searching unsuccessfully for an affordable home in North Seattle. She finally bought a townhouse in Shoreline last summer and thinks the UW's plans make sense for prospective faculty.

"I think it would be helpful for enough people and could be the deciding factor for some," she said. "Especially those with a family and children who might need something stable right away."

In a 2003 UW housing survey, more than 800 faculty and staff of 4,800 who responded said they would be interested in buying a U District condo in a complex open only to UW workers. Another 1,700 said they might be interested.

The median sales price in 2006 of a U District condo was $317,000, up nearly $30,000 from a year earlier, according to the Northwest Multiple Listing Service. The median U District home price was $510,000.

The average salary of a UW full professor in 2006 was $102,000. Associate professors averaged $73,000, assistant professors, $67,000.

Faculty describe a growing gap between the higher salaries in disciplines such as medicine, law and engineering, and the much lower salaries of liberal-arts teachers.

To keep condos affordable and in the hands of employees, the UW is considering several models. Those include retaining partial ownership of the units or having buyers sign an option allowing the UW to buy the units back.

Some universities also limit the profit a seller can reap to help keep down resale prices.

The UW bought the parking lots last year as part of a $130 million deal for the Safeco Tower.

City zoning rules allow for underground parking, ground-level retail stores and housing stacked above, UW officials said. The idea, they said, would be to partner with a private developer and use sales or rental income to cover construction costs.

Covering costs is likely to prove more difficult in Magnuson Park, officials said. That's where the UW owns a 225,000-square-foot former Navy barracks, "Building 9."

Both the UW and private developers have been analyzing a possible conversion to about 150 units, said Jeanette Henderson, UW director of real estate. But the building's historic designation requires any development to retain the facade, adding greatly to costs.

"It's a big building but it's inefficient. It has a basement that may not be suitable for housing," Henderson said. "We just don't know at this point."

UW Executive Vice President Weldon Ihrig said he's excited about the possibilities, particularly in the U District.

"It would be mainly for the young faculty coming here. A lot of the more established faculty and staff got their housing set before the market exploded," he said. "The district is ever-evolving, and we think that right now the overall face of the district would change again with more opportunity for families."

Ihrig, along with UW President Mark Emmert, are among the directors of a newly formed nonprofit called the University Real Estate Foundation. The foundation is chaired by Jim Houston, of Palm Springs, Calif., a former UW football star and major contributor who has helped run a similar housing nonprofit for the University of British Columbia.

Houston said doing deals through a separate entity could help keep unwanted liabilities off the UW books, focus expertise and allow for more nimble moves.

Teresa Lord Hugel, executive director of the Greater University Chamber of Commerce, said she welcomes the prospect of UW condos.

"That would be fantastic," she said. "There's a lot of stuff that needs to happen here to make this as vibrant a community as it needs to be. Housing is good. Making it a pedestrian-friendly community is good."

Meanwhile, at Seattle Pacific, in the expensive Queen Anne neighborhood, officials are toying with the idea of building faculty and staff townhouses — perhaps five to start — said Don Mortenson, vice president of business and planning. He said he plans a survey soon to gauge demand.

Nick Perry: 206-515-5639 or nperry@seattletimes.com