Activity Strong for Welch Plaza

SEATTLE-The final phase of Welch Plaza opened to tenants this week, marking completion of the largest mixed-income housing development in the Central Area neighborhood in 30 years. Located at the busy intersection of 23rd Avenue South and South Jackson Street, the three-building project includes 162-units housing units over 18,000 sf of street-level retail.

Developed by Jackson Square Associates LLC, a partnership between Lorig Associates LLC, the non-profit Central Area Development Association and private investors, including NFL star Shaun Alexander of the Seattle Seahawks, the $25.8 million project began in 1999 when CADA purchased a portion of land from the City of Seattle under its Urban Renewal Act. It was later expanded to include land under the longstanding Welch Hardware Store via a long-term ground lease with the Welch Family. Bank of America provided a $19.5 million construction loan and the City of Seattle put up another $2.2 million in long-term loans and grants. The first apartment building opened in November. The two in the final phase opened to tenants March 1.

Laura Bachman of Lorig Associates tells GlobeSt.com the 162 housing units are 25% leased and the 18,000 sf of street-level retail has two signed tenants and LOIs that would take it to 90% occupancy. Washington Mutual opened its Welch Plaza financial center in February, and NPower Seattle, a nonprofit organization dedicated to helping other nonprofits better utilize technology, has leased 6,000 sf next door to the bank along 23rd Avenue. Bachman adds that imminent deals will add to the development of a regional restaurant chain and a physical therapy-slash-athletic facility. Lorig Management Services, the property manager for the project, was marketing the space at annualized triple-net rates ranging from $15 to $23 per sf.