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SEATTLE-Vulcan Inc. has acquired a 2.1-acre parcel in the South Lake Union Neighborhood, where it owns some 60 acres and has three million sf of development in the pipeline. The real estate investment and development arm of billionaire Paul Allen paid Pemco Insurance $14.87 million for the property, which sits directly east of a recently renovated 1.9-acre park and immediately south of Alley 24, a 362,000-sf, mixed-use project jointly developed by Vulcan and Pemco.

The site is bordered by Pontius and Yale avenues and Harrison and Thomas streets, two blocks west of Interstate 5. The property currently holds an old factory building that gets some use as a parking garage but is otherwise vacant. Vulcan optioned the Pemco property in November, according to public records. Pemco has owned the property since 1988.

"While we are still determining how we would develop the site, it will likely include homes in a variety of price ranges as well as new neighborhood retail amenities," says Vulcan's VP of real estate Ada Healey. "We plan to make it an environmentally friendly and sustainable development similar to many of our other projects in the South Lake Union neighborhood."