Kauri Plans Retail Center at Interbay

December 04, 2013 Back to News
By NAT LEVY
Daily Journal of Commerce Staff Reporter

Port 106 LLC, an entity related to Kauri Investments, signed Total Wine and More as the first tenant in what could be a 103,000-square-foot shopping center in Interbay.

Kauri Investments President and CEO Kent Angier said plans are still coming together for the center, but the goal is to start construction next summer and open in the second quarter of 2015.

Total Wine and More signed a 10-year lease for 25,000 square feet in the complex at 1600 W. Armory Way. Angier said he is talking to several other possible tenants.

Dave Speers, Tim Foster and Jason Rosauer of Kidder Mathews represented Kauri Investments, and Lee Guillory of Seattle Pacific Realty represented Total Wine and More.

The shopping center will have eight buildings ranging from 3,000 to 25,000 square feet, and surface parking. Angier compared it to University Village, and he said there could be a variety of restaurants, clothing stores and specialty shops.

LDG Architects is designing the g center.

Angier said the location is a big draw. The site on 15th Avenue West is near Ballard, Queen Anne and Magnolia, which he said are all neighborhoods that need more retail.

“There is substantial traffic on 15th, with mass transit for people commuting to and from Seattle,” he said. “With those three communities it was a logical spot for retail development.”

Kauri Investments bought the land in 2006, and began talking to big-box retailers like Target, Lowe's and Costco, but zoning changes took big boxes off the table. Angier said the city showed interest in buying the property on multiple occasions but no deal materialized. Kauri Investments then started planning the shopping center.

Interbay has changed over last few years from an industrial area to more of a mixed-use neighborhood, with several new apartment complexes on the north end near West Dravus Street, as well as office and retail — including Whole Foods. Goodman Real Estate and Triad Development have a three-story tech office project adjacent to Whole Foods.

The city is working on a plan to guide future development in the neighborhood. In April the city released initial recommendations that favor keeping industrial businesses while also encouraging more retail and offices.

Angier said he has been involved in the Interbay plan. He sees Interbay as a place that is growing and changing rapidly. While there isn't a lot of housing right in that area, people who live in Queen Anne, Ballard and Magnolia pass through regularly.

“(Interbay) is kind of in a transition stage right now, and given the amount of traffic in the corridor and the neighborhoods surrounding it, people shouldn't have to travel to buy goods and services,” Angier said.

Kauri Investments is working on another project near Seattle Center: an eight-story building with 116 hotel rooms with 56 apartments at 416 John St. Angier said construction is underway, and the building will open in March of 2015.

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