April 17, 2019

Gateway Construction buys site in Georgetown for new headquarters

A commercial property at 5527 - 5531 Airport Way S. in Georgetown has sold for a little over $4.2 million, according to King County records.

The buyer was Airport Way Properties LLC, associated with Gateway Construction Services, which specializes in tenant improvements. Its brokers were Mike Roy and Kevin Skillestad of Neil Walter Co.

“We're extremely excited to have a new home on Airport Way,” says Gateway founder Chris Nielsen. The firm was established in 2001.

Gateway has hired Magellan Architects of Redmond to do feasibility studies for a new headquarters. Depending on the parking requirements, says Nielsen, there could be up to three stories of new construction, or the firm could renovate one of two old warehouse buildings now on the south site. He expects to settle on a plan in about three months.

The sellers were two local investors who acquired three parcels in the 1990s for $831,000. They were represented by Mark Temmel of Temmel Real Estate and Adam Simon of Real Assets Property Services. The property had been listed at $4.5 million for about six months.

The deal was worth about $163 per square foot for the land, which also includes a nearby, non-contiguous parking lot to the north at 5507 Airport Way (between Stellar Pizza and The Cutting Board).

The 19,500-square-foot south site has two one-story commercial buildings that are now home to Earl Harper Studios and Dallas Watson Flooring. Their leases last into 2020, says Nielsen. The buildings date to 1950 and 1928.

“We've got some time” to make a decision, he says. Gateway is now based a few blocks west in Georgetown, with about 7,000 square feet in the Hathaway Building. That building sold last year for $12 million to local firm JSH Properties and Village Investment Partners of Belmont, California.

Nielsen says the company is now about midway through a two and one-half lease extension.

He says Gateway would probably hire a general contractor if it opts for demolition and new development on the south site. A final selection of an architect will depend on the scale of the project.

The three-story plan would include structured parking and ground-floor retail bays facing Airport Way. “Our goal is to keep that Georgetown-Airport Way theme with that funky retail. We want to keep those tenants down there.”

The new headquarters will be across the street from Elysian Brewing, and close to many bars and restaurants. Another benefit to staying in the neighborhood, says Nielsen, is that he and his employees will be able to walk to all their favorite lunch spots.