Tacoma’s ‘Super Block,’ nearby parcel enter real estate market frenzy. What could go there?
A collection of familiar downtown Tacoma parcels encompassing multiple blocks that so far have not been part of the development rush are officially on the market.
The first one, known as the “Super Block,” is nearly 2 acres and encompasses two full city blocks between South 13th and 14th streets, from Pacific Avenue to A Street. It’s one of the largest contiguous pieces of undeveloped commercial property in Tacoma.
The second, adjacent to the Columbia Bank Center, is at 12th and A streets and is just over three-quarters of an acre.
“Together, the two lots allow for over 2.6 acres of high-profile, water-and-mountain-view, developable property in the core of the Financial District,” according to promotional release from Lee & Associates, which is marketing the properties.
The asking price for the Tacoma Super Block and nearby site is $17,375,000.
“Approximately $400,000 has gone into the design, planning, and pricing for a 250,000-square-foot office building on the Super Block with street level retail and underground parking,” the marketing report noted. “Additional feasibility studies have been completed for a hotel/apartment tower on the 12th & A Street property.”
Those reports are included as part of the marketing package.
The properties are owned by Arletta Development Corp., a real estate holding company of the Haub family. The late billionaire German grocery store magnate and longtime Tacoma-area civic booster Erivan Haub died in 2018 at age 85.
The sites’ proximity to the Columbia Bank Center is no coincidence; Haub built Columbia Bank’s headquarters at South 13th and A streets in 2001.
The Columbia Bank Center sold late last year for $58.3 million.
Haub and others envisioned the Super Block for various developments through the years, notably as a potential new headquarters for Russell Investments in the city’s push to keep it here, before the former Tacoma-based firm relocated to Seattle in 2009.
The Super Block also factored into the area’s long-shot pitch for the second Amazon headquarters in 2017 and has been at the ready for other pitches.
The parcels now earn money for the owners as paid parking lots for surrounding buildings — a business that took a nosedive in the pandemic as office workers stayed home.
“The COVID-19 pandemic had a significant impact on parking revenues during 2020 and 2021,” the report says. “Additionally, large vacancies at 1301 A Street and 1423 Pacific Avenue have impacted demand for these sites specifically,” the marketing report notes. “The vacancies at 1301 A Street have since been backfilled and employees of the surrounding office buildings are quickly returning to work.”
It suggests a developer could continue to use the sites for paid parking before development but makes clear that the properties “are being sold as development sites. Existing parking operations will provide incremental income for a prospective developer prior to development.”
The marketing report notes, “... initial studies and plans indicate an ability to build nearly 1 million square feet of office, retail, hospitality, and multifamily between the two properties. Their Downtown Commercial Core zoning allows a variety of uses and vertical development up to 400 feet.”
Since the properties are located in the Downtown Commercial Core, the marketing report notes, the “preferred use of this district is for retail, office, hotel, cultural, and governmental uses. Residential, educational, and some industrial are allowed. Industrial uses not located entirely within a building and automobile service stations/gasoline dispensing facilities are prohibited.”
Both sites are in Qualified Opportunity Zones, which would offer additional investment incentives to developers.
“It’ll be interesting to see who ends up buying the sites and what types of development that will bring,” said Harrison Laird, Principal of Lee & Associates, in a statement.
“With dozens of new multifamily projects around town and several new hotels, those cannot be ruled out as potential uses, either.”
More information available at tacomasuperblock.com.
This story was originally published April 29, 2022 at 5:00 AM.
