Anderson School bothell wash

The W. A. Anderson Building in Bothell, Wash., which McMenamins hopes to turn into an entertainment complex with the help of a group of investors.

(Anderson School Properties LLC)

McMenamins is gearing up for one of its largest redevelopment projects yet — converting a former Bothell, Wash., school into a hotel, brewpub and theater — and it's turning to crowdfunding to finance the project.

Taking advantage of new Securities and Exchange Commission rules that allow direct investment offerings, McMenamins is

to raise $8 million of the equity in the $26 million redevelopment of the W.A. Anderson Building. McMenamins itself will put in $1 million and act as managing partner.

McMenamins Inc.

Founded:

1983

Ownership:

Family-held

Employees:

2,200

Locations:

52 in Oregon and Washington

Revenue:

More than $100 million

It's the first time the company has sought outside equity partners for a redevelopment project, but it's also one of the largest it's taken on all at one time. The project is similar in scale to its Edgefield or Kennedy School complexes, only those were taking on in phases.

The Anderson School redevelopment -- which will comprise a 73-room hotel, restaurants and bars, on-site brewery, meeting space, a pool and a spa -- will be taken on all at once.

This isn't a typical crowdfunding campaign, where donors get token gifts in exchange for kicking in a few bucks. Investors will be members in the development of the project, promised an 8 percent a year return on the money they invested as well as additional return if it appreciates in value and tax benefits.

It's also not quite bringing the opportunity to invest to the masses. The minimum investment is $250,000, and participation is limited to “accredited investors” worth at least $1 million or who make more than $200,000 a year.

"We really hope there are people who have are really interested in how the community develops," said Mike McMenamin, who co-founded the company with his brother Brian in 1983. "In the end, I think it's a lot more fun when you have a lot more folks who really know what you're doing and believe in the community investment."

The project comes as Bothell attempts to bring more life to its downtown. The city has earmarked $150 million for downtown infrastructure improvement in hopes of unlocking more private investment.

-- Elliot Njus