Seattle lawyer eyeing ARCO tower as investment

by The Associated Press

A Seattle lawyer with a sizable stake in Anchorage, Fairbanks and Bethel real estate is reportedly eyeing ARCO Alaska Inc.’s downtown tower, which would be emptied out if the pending takeover by BP Amoco PLC is approved.

Joe Brotherton, who scooped up apartments during the 1980s real-estate crash, said the 22-story tower would be a “cool” building to own and that he is definitely interested in buying it.

BP Amoco recently announced it would sell the building if regulators approve the takeover, valued at more than $25 billion. ARCO employees would either be laid off or go to work for BP at its smaller midtown Anchorage building.

Anchorage’s assessor’s office estimates the market value of the ARCO property at nearly $47.4 million, but Brotherton said he believes it would sell for closer to $40 million.

Brotherton paid $2 million in late October for a four-story office building in downtown Anchorage.

He has also had several projects this year in Fairbanks, Juneau and Bethel, where he said he recently paid almost $500,000 for the Kuskokwim Hotel.

Brotherton, 45, was among the handful of investors who were buying in the 1980s, when many Alaskans were going bankrupt and were being forced to sell. In Anchorage, he picked up more than 300 apartments.

And Alaska still beckons. “It’s not a bargain like it was 10 years ago, but you still can find deals that make sense,” he said.

He said he and partners Jonathan Rubini, an Anchorage attorney, and real estate investor Leonard Hyde, bought two apartment buildings in Fairbanks this year. They’re also involved in a redevelopment project in the city’s downtown that could result in a new hotel for the city, he said.