February 3, 2016

McKinstry-Trace team picked for mixed-use project at WSU Spokane

Photo courtesy of Washington State University [enlarge]

Washington State University has selected a team to redevelop 4.1 acres on the southwest end of its campus in Spokane.

WSU announced it will begin negotiating a ground lease with JB LLC, a group that includes Trace Real Estate Services of Seattle and McKinstry Spokane.

A spokesperson for WSU said the university hopes to finalize an agreement in June.

The three parcels are at 131 E. Main Ave., east of Pine Street between Main Avenue and East Spokane Falls Boulevard. The property has about 179,000 square feet of warehouse and storage space in four interconnected buildings.

The centerpiece is a 107-year-old, six-story warehouse for Jensen-Byrd that will be restored. Last year WSU decided to keep the building after preservationists blocked plans to demolish it.

WSU Foundation purchased the warehouse in 2001 and transferred it to the university in 2004. It has been empty since Jensen Distribution Services moved the last of its operations to another facility.

In its submission to WSU, the development team said it wants to maintain the primary facades of the significant structures.

The expected cost to refurbish the building is more than $55 million.

A spokesperson for McKinstry said the principal design and construction team members will be from Spokane, but the firms have not been finalized.

The request for qualifications issued in October said WSU wants a mixed-use project to be developed under a long-term lease. It would need to include operations and storage space for the university's Facilities Services, and parking.

The McKinstry spokesperson said the team does not have a proposal for the site yet.

Seattle-based McKinstry describes itself as a full-service design, build, operate and maintain firm with more than 1,800 employees and $500 million in annual revenue.

Trace Real Estate Services' projects include Henry Pier and Chandler's Cove in South Lake Union.