Houston, Tex. -based Lionstone Investments sold three lots in the Esterra Park development community in Redmond’s Overlake district to Lincoln Property Company and AvalonBay Communities separately for housing development opportunities. The lots were sold for a total of $49.5 million with an option to repurchase them if the new developers do not commence construction on their projects by a certain date, according to public documents reviewed by The Registry.
Blocks 5 and 6A, which were designed for housing and commercial development, respectively were sold to Dallas-based Lincoln Property Company for $33.3 million. The building on block 6A is proposed at six stories with 215 homes, while block 5 is planned for three structures—building A is proposed as an eight-story building with 212 homes, and building B is proposed as two buildings connected by enclosed walkways, with heights of five and six stories and 231 homes. This information was provided by the City of Redmond Web site describing the details of the Overlake neighborhood development opportunities where Esterra Park lies.
Block 8 was sold to AvalonBay Communities for $16,250,000 for a development of a six-story, 330-home building, according to the same Web site.
In both transactions Lionstone has retained an option to repurchase the lots if the developers do not commence construction on their projects by a certain date. In the case of AvalonBay, that date is December 21, 2018, and in the case of Lincoln Property the deadline is December 16, 2021.
The city of Redmond is looking at Overlake as one of the major development opportunities within its borders. It is anticipating growth over the period between 2010 and 2030 to be 5,000 new homes and 25,000 jobs. Zoning regulations in the neighborhood will allow buildings of up to 12 stories (10 for commercial buildings) and FAR up to 4.0 for residential space and 0.55 for commercial space.
Overlake is also slated for two light rail stations that should be coming in 2023, which the city anticipates will provide additional commuter benefits and connectivity to to the region through major transportation hubs.