By Jack Stubbs
SRM Development, a Spokane, WA-based development and construction company that specializes in multifamily, senior housing and mixed-use developments across the Western U.S., recently made moves to expand its Puget Sound region portfolio.
On August 30th, in a transaction that was recently recorded, the company spent $12 million to acquire a two-parcel property—which includes a .1-acre parcel of vacant commercial land and two retail buildings totaling just over 16,000 square feet—from Tabit Partners, an entity based on Mercer Island, King County records show.
The transaction included two adjacent parcels, located at 2667 SE 27th St. and 2729 SE 27th St., according to public documents. The first parcel comprises a .1-acre plot of vacant commercial space, while the second parcel includes two buildings: the first is a 9,462 square foot retail building constructed in 1984 and the second is a 6,644 square foot retail property built in 1960.
The two parcels, which are are referred to as “Tabit Square” in public documents, are just under half a mile east of Tabit Village Square, a retail complex located at 7633-7679 SE 27th St. According to a property listing written by MK Property Services LLC, there are currently 1,163 square feet available for lease at Tabit Village Square, which benefits from strong demographics and high pedestrian and vehicle traffic. Some of the existing tenants at Tabit Village include Verizon Wireless, The UPS Store and Blue Sky Cleaners, among others.
The property is directly adjacent to I-90 and approximately six miles east of downtown Seattle. The complex is also roughly five miles southwest of downtown Bellevue via Bellevue Way SE.
According to The Registry’s reporting, SRM development was last active in the Puget Sound region in June 2018, when the company acquired a three-parcel property—including the Knights of Columbus building and two associated parking lots—in Seattle’s Capitol Hill neighborhood for $18.5 million.
SRM has plans to redevelop the three-parcel property, although at the time of the transaction, the redevelopment plans were still in their conceptual stages, according to James Rivard, managing principal at SRM. “We don’t know yet what exactly we will do with the property,” he said. “The [Knights of Columbus] building will be retained and rehabilitated into a residential or commercial use; we’re just now engaging in further studies of what we think the highest and best use is for the building and the neighborhood.” SRM plans to develop the adjacent parking lots into residential housing.
Founded in 2001, SRM specializes in the development of multifamily, senior housing, office, hospitality and retail properties in target West Coast markets including the Puget Sound region, the San Francisco Bay Area, San Diego and Los Angeles, according to the company’s web site.
SRM has an extensive portfolio in the Puget Sound region, and worked on developing the Google Campus in Kirkland, among other projects. Some of the company’s multifamily properties include the 211-unit Astro Apartments and the 234-unit Lyric Apartments in Seattle; the 65-unit 101 Apartments in Kirkland and the 262-unit Meyden Apartments in Bellevue.
Mercer Island has not seen many commercial or multifamily properties change hands throughout 2019, though one in-the-works development in particular, The Mercer Island Town Center Development, is set to add a new dimension to an evolving city. In Late August 2018, the city of Mercer Island released a Request for Qualifications (RFP) in the hope of partnering with a private developer to create a mixed-use project that will ultimately consist of a city-owned condominium project and a commuter parking facility across from the future East Link Light Rail Station, which is scheduled to open in 2023.
The East Link Light Rail Station, scheduled to open for service in 2023, is a 14-mile, 10-station undertaking that will further connect the Eastside to the wider Puget Sound region. The $3.7 billion project will allow riders to get from Mercer Island to the University of Washington in 20 minutes; from South Bellevue to Sea-Tac Airport in under one hour; and from the Overlake Transit Center to Bellevue Transit Center in roughly 10 minutes, according to Sound Transit’s web site.
The mixed-use development, which will look to further Mercer Island’s Town Center goals and enhance the city’s existing Town Center, could ultimately comprise a 5-story structure including 100 or more city-owned commuter parking spaces; ground-floor commercial space devoted to restaurant, retail or personal services. The project is targeting LEED Gold certification and could also include pedestrian-oriented pedestrian and plaza space.