Update for Dec. 23
The seven-story mixed-use building envisioned by developers for the southeast corner of the Alaska Junction is back in motion after the initial developer, Conner Homes, sold the spot to Equity Residential on Tuesday for $11.4 million.
The sale means the search is back on for current tenants who will eventually need to find a new location. Equity has not returned calls for comment on their plans for the site, but Tony Ruiz with Conner Homes has said it is likely they will move forward with a similar plan.
Geoff Abdian, owner of the furniture consignment store Suite Arrangements, is one of the tenants now on a month-to-month lease with Equity.
""I believe all of the small businesses leasing retail space on the Junction property recently sold for development are saddened by the realization that we must relocate," Abdian said. "And, while some may view a seven-story condominium development as 'progress,' I believe moreover that most of us are saddened, as are many of our customers, that such development may well alter the traditional neighborhood charm of the Junction."
"No one should fault any property owner or investor for acting in their own best interest," he continued. "It is noteworthy, however, that when commercial leasing rates for a new facility are double or triple what Junction businesses have been paying, it is likely that only large chains, such as Starbucks or California Pizza Kitchen, or similarly well-established businesses, will be able to afford the space. Ultimately, small businesses get driven out, and consumers foot the bill in the form of higher prices required to cover those new leases.
"Thus, by this kind of development and 'progress,' our community may well devolve, in my view, into an expensive steel and glass clone of Anywhere, America -- a trend few seem to support. Hopefully, the small 'mom-and-pop' shops that have been so prevalent here will find a way to survive. And, the people of West Seattle will find other unique ways to preserve our sense of community as the structural character of the neighborhood changes."
Reactions to the news have been similar from fans of the West Seattle Herald Facebook page.
"Great, just what we need," Mike Emmick said. "Another stupid 'mixed use building' with retail on the first floor where the rent is so expensive no businesses can afford it and condos above that only the super rich can afford... What happened to the old, good West Seattle?"
"It happened to Ballard and now it's happening to us ... but worse," Eli Lauffler chimed in.
"Attack of the condos," he added.
Tenants have not been given a move-out date from Equity at this time, but estimates from Charlie Conner put the groudbreaking for a new building in the summer of 2012 at the earliest.
Update for Dec. 22
Tony Ruiz, CFO for Charlie Conner's Conner Homes, confirms they closed a sale on Tuesday for the Junction property - slated to become a seven-story mixed use residential/retail complex. The buyer was Equity Residential, the biggest publicly traded apartment developer in the nation. Media reports say that the sale price was $11.4 million.
The property was put on the market in August and Ruiz said the new owner took over all the plans and permits associated with the project in the sale.
According to Equity Residential's investor information, the company owns or has investments in over 400 properties in 16 states.
This story will be updated with more details and reactions from the current tenants renting on a month-to-month basis.
Update for Aug. 15: Tony Ruiz, CFO for Conner Homes provided some additional insight into the Conner Junction property sale.
Ruiz said the eventual buyer/developer will inherit the Weber Thompson Architects design plans for the seven-story mixed-use retail/residential complex and he assumes zero to minimal changes will be made to that design.
As for current tenants, Ruiz said most are on a month-to-month lease with the "idea that nothing changes until something changes." Leases will transfer to the new developer upon sale of the property and tenants will likely be allowed to stay put until demolition begins.
Charlie Conner's letter to his tenants at the Junction location states, "we believe construction would not start until the summer of 2012 at the earliest," and Ruiz added it "could be another year after that."
David Chapman with Turning Point Realty Advisors has been charged with bringing Conner's Juction property to the market.
Chapman said Turning Point will introduce the property to the investment market this week. He said the timetable for a sale is "unknown" as "capital markets right now are a little sketchy."
Original post on Aug. 12: It seemed inevitable that shovels would break ground soon. Charlie Conner’s seven-story mixed-use, 198 apartment complex had received the City’s blessing to move forward and a “public benefit package” had been worked into the design in hopes of appeasing a West Seattle community that had made its weariness of the project clear.
Then, in early August of 2011, current tenants of the southeast corner of the Alaska Junction received a letter from Conner stating the property was headed for the market, creating a delay “until the summer of 2012 at the earliest.”
Business owners like the Rocksport Bar and Grill’s Darren Ahlf had already accepted their fate: it was time to start looking elsewhere as the Conner project would demolish the current buildings, from north of Talarico’s on California Ave. s.w. and from California to 42nd Ave s.w. on s.w. Alaska St., to make room for the retail/apartment complex that would rival Mural Apartments just to the south in scale.
Based on the letter, Conner Homes is using Turning Point Realty Advisors to find a new developer who “will be well capitalized, self-financed, understands and executes acquisition, permitting, construction, leasing and management of similar large projects.” It sounds like the project will still happen as it’s been designed, just under the guidance of a new developer and delayed until that fit is found.
Conner’s letter also states the new owners will be given a transitional meeting so they understand the community agreement that resulted in the public benefit package, including plans to mimic the look of nearby California Ave S.W. business fronts, create plazas and walkthroughs between California Ave and 42nd Ave S.W., adding historical West Seattle art to the outer walls and building large sidewalks to encourage foot traffic (among several other features you can read about here).
“This was not an easy decision,” Conner said in his letter. “As many of you know my long term goal has been to own a piece of the junction long term as an income producing property when I purchased this property eleven years ago.”
This story will be updated.
