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July 31, 2020
Google's reported $435.7 million purchase last year of Kirkland Urban's three office buildings — one now under construction — was never recorded in King County. This week a new $40 million land sale to Google was recorded for 321 Parkplace Center. (That's the old legacy address for the original shopping center, QFC and office building.)
What sold is a 1.3-acre parcel on the east side of the nearly 12-acre site, facing Sixth Street. Demolition was recently completed on the circa 1982 office building that was part of the original old Kirkland Parkplace. It's the last part of the original development to disappear. Rhine did the demo.
The site had been reserved for a possible second apartment building, aka Phase III. That plan now appears to be dead.
The sale was worth about $704 per square foot.
Google didn't announce the sale or its brokers. The sellers apparently negotiated on their own behalf.
No new plans have been filed for the property, which also goes by 401 Parkplace Center. The five-story building had been occupied by Wave Broadband and others.
The seller of record was KPP Development LLC, an entity of Talon Private Capital, Ryan Cos. and PGIM (aka Prudential Insurance). KPP also assigned all the Kirkland Urban development rights to Google with the land sale.
The original developers still retain the new Uptown apartments, north of the site that sold, on the corner of Central Way. That and the north and central office buildings were Phase I. Phase II is the south office building being constructed by BNBuilders (CollinsWoerman is the architect). That phase had to wait for QFC to relocate to its new home in the central building.
Reports of Google's interest in Kirkland Urban first surfaced in 2018. Ryan announced the unpriced sale last October.
Tableau is a tenant in the north building. Google also has space there, occupies all the central building offices and will take the south building, too.
Kirkland Urban just added Caffe Ladro, Seattle Coffee Gear and First Tech Federal Credit Union as new tenants. Others in place or coming soon are Top Golf, Shake Shack, Tutta Bella, Chainline Brewing Co., Mud Bay, Evergreens, and Dough Zone, SOI (a Thai restaurant) and Vinason Pho & Grill.
The now demolished 401 Parkplace building was once home to the regional office of Sylvan S. Shulman Co. of California, which acquired Kirkland Parkplace in 1993 from an Ohio state pension fund for $25.5 million. Shulman then sold it in 2007 to Touchstone and PGIM for almost $60 million. After Touchstone's redevelopment plan was stalled by the great recession, Touchstone sold its interest in 2013 to PGIM, which later partnered with Ryan and Talon.
Brian Miller can be reached by email at email@example.com or by phone at (206) 219-6517.