Originally published in the Journal-American, April 9, 1990
By Leslee Jaquette
Journal Eastside Bureau
Douglas C. Samuels (left), one of the owners of Pacific States Marketing Co. and president of Pacific States Mortgage Co., Robert Olsson, the other owner of Pacific States Marketing Co. and vice president, Pacific States Mortgage Corp.; and Jack L. McIntosh, president of M&H Development, examining map of the Black Diamond area where M&H plans to develop a “Bridle Trails” theme estate. Photo by Leslee Jaquette.
BELLEVUE — M&H Development Co., Inc. of Bellevue has acquired a 410-acre, $2.8 million tract adjacent to Black Diamond which will be developed into a “Bridle Trails” theme estate.
Jack L. McIntosh, president, says up to 82, five-acre tracts will be developed on the plateau parcel which fronts Black Diamond Lake and stretches to the north edge of the Flaming Geysers State Park. The developer foresees $500,000 to $1 million homes will be built on $150,000 lots available through both builder and public sale.
Douglas C. Samuels, president of Pacific States Companies of Bellevue arranged the sale of the property to Black Diamond Associates, a four-party, ownership group headed by M&H Development. The financial consulting firm offered the property to M&H Development after the previous owner in Florida decided to sell rather than deal with the complexity of development.
With a formidable record in upscale development, such as Swan Lake, Redmond, and The Woods of Issaquah, M&H Developers plans a number of amenities, including trails, equestrian center (arena), and waterfront park. Further improvements will be decided at a later date. The Black Diamond project is already zoned for five-lots and will take about one year to complete the permit process and start the infrastructure.
“We’re trying to do something special, not just a cookie cutter development,” says McIntosh, who is described as an Eastside “institution” by Samuels.
With a success in a number of upscale Bellevue residential subdivisions, including Somerset Ridge, Woodridge Park Estates, and Woodmoor, McIntosh is confident the new development will sell fast. When people saw Swan Lake they suggested he do a similar high-end development in the south end of King County.
“We are sure there is an enormous market for people who dream of living in a protected development,” says McIntosh. “Currently, someone with a trailer home could move next door to a $500,000 house.”
M&H Development isn’t concerned with attracting Seattle commuters. McIntosh says their research indicates there is a huge market for this kind of subdivision for people who already live and work in the area. Bordering the Black Diamond city limits and only eight miles from Auburn, McIntosh expects the development will attract Boeing and Weyerhaeuser executives, south end residents looking for upscale homes, and pilots.
He also notes the region’s climate is statistically slightly better than Seattle and the plateau offers beautiful Mount Rainier views. He adds that access to Black Diamond will soon be greatly improved when SR Highway 18 becomes four-lane.
M&H Development is in the process of building a development team. Land use attorney Bob Johns and soils expert Don Strong Co. of Bellevue have already been retained
Pacific States Companies
Pacific States Companies of Bellevue, with mortgage, marketing, and investment banker divisions, does lots more than orchestrate residential development purchases.
According to President Douglas C. Samuels, the privately held mortgage banking brokerage firm, has participated in financing virtually every type of investment property over the past ten years. Currently they are finalizing a three-year, $300 million loan for Pacific Union Co. from the Sanwa Bank of Tokyo. Recently they arranged a large loan for Mike Jacobson Construction in Bellingham through the Bank of Oslo.
Samuels and company vice president Robert A. Olsson were involved in commercial real estate before 1979, the benchmark year the prime rate escalated severely. Samuels says that happening, which changed the banking industry more than anything since the Great Depression, showed people they couldn’t rely on banks for loans.
“We both became concerned with the financial marketplace,” says Olsson with a thoughtful look. “In order to make deals we had to go out of the area to get financing. Clearly, finding financing for an acquisition is the hardest part of development.”
As a result of ferreting out their own loans the two became educated in the world of finance. They have developed long-term working relationships and correspondence with commercial banks, trusts, pension funds, insurance companies, and numerous private investors. These contacts help them arrange interim financing for new construction, bring together joint venture partners, and provide equity financing.
One area of special expertise for the financial consultants is the development in the sale and acquisition of large investment properties for private and institutional investors.
“Financial knowledge in addition to marketing a sales transaction is a powerful tool,” says Samuels.
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