By Meghan Hall
Mercer Island, which is sandwiched between downtown Seattle and Bellevue—two of the fastest growing cities in the Puget Sound—is starting to see growth of its own as investors look to capitalize on untapped submarkets. According to a marketing brochure released last week by brokerage firm Newmark Knight Frank, a development site in downtown Mercer Island has come up for sale. Located at 7707 SE 29th Street, the parcel can accommodate up to 36,653 square feet of office and retail or up to 33,521 square feet of residential and retail should the future property owner pursue redevelopment.
Guidance pricing for the property was not immediately available, and Newmark Knight Frank did not return The Registry’s request for comment.
The property, called “MI29” totals 22,769 square feet and is currently home to a single office building and garage. The office totals 2,107 square feet, while the garage totals 5,900 square feet. The building is fully owner-occupied.
Existing zoning for the property allows for the development of up to 47 residential units or commercial office space. Demographics around the property are also strong, states Newmark Knight Frank, due to its proximity to both downtown Seattle and Bellevue, where a young, highly educated workforce resides, and whom have significant disposable income. Thanks to this growth throughout the region, Mercer Island’s downtown population is expected to grow by four percent over the next five years.
Additionally, the property’s location downtown appeals to this urban tenant, and is classified as “Very Walkable” with a Walk Score of 80. There are more than 30 restaurants and retailers within a few blocks’ radius, as well as five coffee shops, eight banks and three grocery stores such as New Seasons Market and QFC. Numerous other multifamily developments are in the immediate vicinity, including The Mercer Apartments, Park Mercer Condominiums, 77 Central Apartments and the Island Square Apartments.
The property is located four blocks from the Mercer Island Park & Ride, and is easily accessible to the Sound Transit Express Bus. Light Rail will also pass through Mercer Island by 2023.
Mercer island has been slowly, but steadily, attracting investor interest over the past several years, with several big names investing in the city. In 2017, SyRES Properties purchased the Hadley Apartments for $97.75 million. The following month, Greystar purchased the 645-Unit Shorewood Heights Apartments for $209.7 million. More recently, Spokane, Wash.-based SRM Development spent $12 million in September to purchase a two-parcel property from Tabit Partners. The acquisition included a .1-acre parcel of vacant commercial land and two retail buildings totaling just over 16,000 square feet.