September 18, 1998

Real Estate Buzz

By MARK STILES
DJC Real Estate editor

Port backs away from Unocal deal

The Port of Seattle has decided to stop negotiating --temporarily at least -- to buy the prime Unocal property on the waterfront.

Triad Development, meanwhile, still is pursuing the property. "In our opinion, we are the likely purchaser," said Fred Grimm, a Triad partner. "We anticipate being under contract within the next three months."

The Port ceased negotiating with Unocal but not because it isn't interested, said Al Lowe, the Port's manager of marine real estate. There was an exchange of offers and counter offers.

"We couldn't quite get together on the terms so we bowed out for now," Lowe said.

The approximately 5-acre property is just north of Broad Street. There is an upper yard of 3.8 acres on the block between Western and Elliott avenues. A lower yard is to the west and contains 2.12 acres.

Both parcels have undergone extensive cleanup to remove petroleum contamination. Work on the upper yard has been completed, and cleanup of the other parcel is nearly complete, Grimm said.

The Port still is interested in the lower yard, which Lowe said is needed for a Broad Street grade separation proposed as part of the region's Freight Action Strategy Corridor, a series of two dozen transportation improvements intended to speed cargo through traffic bottlenecks.

"We have been up front that that will be needed," Lowe said. "Whoever buys it will want to plug into our plans and know that it's needed."

The Port also has considered building a parking garage on the property or using it to site office space. "We are approached from time to time by biopharmaceutical firms that would be interested in someone creating a facility for them," Lowe said. "We had nothing specific in mind."

Triad wants the land for a mixed-use development of offices, condos, apartments and a boutique hotel similar to Inn at the Market, Grimm said.

Past news accounts have listed the price of the land at between $15 million and $25 million.

Triad officials would like to tie development of the Unocal site to Pier 70, which it owns. Plans call for a remodel of the pier that housed MTV's "The Real World" cast and the now-defunct Iguana Cantina. A new restaurant is planned.

Pier 70 currently houses Triad's offices, Pier One Imports, the Spirit of Puget Sound cruise line, Port of Seattle Credit Union and banquet facilities.

"It will definitely be a prominent place on the waterfront," said Triad's Director of Development Ross W. Woods, who added the plan is to retain current tenants.

Triad plans to apply for permits in the near future, Woods said.

As for financing Pier 70 improvements, he said nothing is settled "but we have a pretty good idea who we're going to use."

Stadium groundbreaking delayed

The main speaker at the NAIOP breakfast was Bob Collier, Vulcan's senior vice president, who announced that the Saturday groundbreaking scheduled for the football stadium has been delayed. Finalizing details always takes longer than anticipated, he explained, though construction will begin soon.

Collier, who told NAIOP that his association with the dynamic, fast-paced company makes him "one of the luckiest people in the room," said two years ago he was going to work only on a few of Allen's projects. Now, he's dealing with more than 30 projects, many of which he can't talk about today.

But there are plenty he can talk about.

For instance, did you know that construction crews at Experience Music, the 130,000 square foot blob-like building that will house a rock 'n roll museum, have not had to ream a single hole in the structure? Precise metal fabrication specs are sent via the Internet to the Portland plant that's manufacturing the buildings pieces.

World-famous architect Frank Gehry's design of Experience Music is so advanced that some construction techniques are being developed "as we go along," Collier said.

He warned that people will either love or hate the design of EMP which opens late next year. But Collier said the interactive exhibits will blow visitors' minds.

"I can assure you, you won't believe your eyes and ears," Collier said.

Visitors will feel as though they're walking "into some sort of organism."

In discussing other projects, Collier said the stadium is being designed to take advantage of future technology, such as seats so smart that fans one day will be able to dial up instant replays and concession food orders. The technology is not quite ready so builders will leave pathways where the equipment, once it's developed, can be installed.

Vulcan still owns 11 non-contiguous acres on South Lake Union. The former Seattle Commons ground is ripe for development, Collier said, and one of many possibilities is siting biotech facilities there.

Previous columns:

• Real Estate Buzz, 09-11-1998