Metropolitan Mortgage, Nitze-Stagen to Develop Spokane Land

SPOKANE, WA-Metropolitan Mortgage & Securities Co. Inc. of Spokane and Seattle-based Nitze-Stagen & Co. are forming a joint venture to develop a 76-acre parcel of land that stretches 1.3 miles along the north bank of the Spokane River, across from Spokane’s Central Business District.

The vast majority of the land is a former railyard that Metropolitan Mortgage acquired from Union Pacific in the mid 1980s. The company’s planned unit development for the site was approved by the City in 1994 and included an environmental impact statement. The cost of the development is estimated in the hundreds of millions of dollars. Both parties expect to be moving dirt by early 2004.

Nitze-Stagen President Kevin Daniels tells GlobeSt.com a joint venture agreement has been hammered out between the two companies and the next three months will be spent evaluating the market and deciding whether the project as originally planned is doable or whether it needs to be tweaked to match the market. Russ Johnson, market development manager for Summit Property Development, Metropolitan’s real estate company, tells GlobeSt.com that the two parties, both of which are self-capitalized, will have a business plan hammered out by the end of the summer and “will churn and burn from that moment on.”