By Jack Stubbs
Skanska USA has just purchased three properties in Belltown, with a view to undertaking its fifth development project in the greater Seattle area: a 346-unit multi-family tower with on-site ground-floor retail. The land acquisition represents the latest chapter in Skanska’s presence in the Puget Sound Region, who begun development operations in the area in 2011.
On October 25th, Skanska announced that they purchased the three-parcel 19,440 square property for $21.6 million or $1,111 per square foot, according to public records filed with King County. The seller was SAN L.L.C., an entity whose managing member is Charlie Nordstrom.
The three-parcel asset, built in 1924, is located at 2208, 2212 and 2218 4th Ave., with the three structures totaling 19,440 square feet and occupying a half-acre plot of land. The first structure, a retail/office building, is currently occupied by Studio X, a local recording studio, while the second building, is currently tenanted by Piranha Productions LLC, a video production service company and IQ Beats Inc., an audio equipment store. The final plot is an associated warehouse space used for on-site parking.
Bordering Belltown, the property occupies a connected downtown location, sitting less than a mile from the edge of Elliott Bay, half a mile to the north of Seattle’s historic Pike Place Market, and one mile to the northwest of Downtown.
The property’s location is an element that will positively impact the planned 346-unit development. “Our team’s focus continues to be on projects that include close collaborations with the community, the city and our customers,” said Murphy McCullough, Skanska executive vice president, in a recently released statement. “Similar to other projects Skanska has developed in Seattle, we will have a particular focus on the retail and ground-floor experience in this location,” McCullough added.
Located between Blanchard and Bell streets, the 2200 Block parcel occupies a vibrant location. The planned redevelopment will also have wider-reaching impacts as well, according to the company’s statement: As part of the Housing Affordability and Livability Agenda (HALA) program, Skanska’s 2200 Block development will contribute an estimated $4.1 million to the city’s affordable housing fund.
The company’s latest acquisition in Belltown represents another addition to its Seattle area portfolio, which includes 400 Fairview, a 14-floor property in South Lake Union that is the headquarters to Tommy Bahama; 2+U, a 38-story office tower currently under construction Downtown which will also include an 18,000 square foot outdoor urban village; and Alley 111, a 260-unit multifamily building containing 6,000 square feet of retail space in Bellevue. At Stone34 in Fremont, the developer also crafted the new world headquarters for Brooks Sports, which subsequently became the City of Seattle’s first project to complete the Deep Green Pilot Program, according to the company’s website.
Founded in 1971, Skanska USA creates a variety of products and undertakes construction and project development projects across various industries, including commercial real estate, education, government, industrial and life sciences. In the commercial sector, the company develops a variety of office and mixed-use projects. The company has offices in 31 metro areas nation-wide, with experience in construction, civil infrastructure and public-private partnerships, according to its website.