Historic Tacoma building gets new name, financing amid conversion to apartments
AI-generated summary reviewed by our newsroom.
- Horizon Partners advances Tacoma office-to-apartment project for 2026 debut
- Sandberg on the Ave repurposing 1908 landmark with 75 upscale rental units
- Tacoma sees office-to-residential conversions amid urban renewal push
Plans to convert another former downtown Tacoma office building into apartments appear to be kicking into high gear.
According to an Aug. 21 release, Horizon Partners Northwest has secured funding for the final stage of its Sandberg on the Ave project at 1423 Pacific Ave. in downtown Tacoma.
The site was most recently home to offices of DaVita, the kidney-dialysis services company. DaVita occupied the entire 110,440-square-foot building’s Class A office space until it announced plans in 2017 to leave Tacoma for a new Federal Way campus.
The site, also known as the Sandberg-Schoenfeld building, was completed in 1908. It was once home to Schoenfeld & Sons Furniture for decades and was added to the National Register of Historic Places in 1999.
Horizon Partners Northwest purchased the site in 1999 and launched renovations, including a seismic retrofit.
Sandberg on the Ave is to begin pre-leasing in January with anticipated completion April 2026.
The estimated $26.5 million project calls for 75 apartments ranging from 800 to 1,350 square feet, each with onsite parking. The News Tribune first reported on the project in October 2022, following the filing of its initial pre-application with the city. At that time, plans called for leasing to begin in 2023.
According to the release, “Residents will enjoy high-end finishes including quartz countertops, walk-in closets, mini-split heating/AC, marble bathroom surrounds, induction electric ranges, tankless heat pump water heaters, and full-size washers and dryers.”
Community amenities will include a fitness center, pet salon, 2,500-square-foot rooftop amenity space with full kitchen, conference/dining rooms, Zoom rooms and lounge areas featuring a fireplace and big-screen TV as well as deck, fire pits, dining areas and more, the release stated.
“Sandberg on the Ave reimagines the historic Sandberg Building—once home to Schoenfeld’s Furniture and, more recently, DaVita—into a modern, amenity-rich residential community while preserving its storied past,” it added.
Horizon Partners Northwest also has been involved in other local adaptive reuse projects, such as Tacoma’s Brewery Blocks.
Spokane-based Washington Trust Bank recently acquired another downtown Tacoma building with ties to the Sandberg on the Ave developers. In July the bank purchased the former Commencement Bank headquarters building, 1102 Commerce St., from an LLC affiliated with Horizon Partners Northwest. The development group acquired the site the same year as its acquisition of the former DaVita building.
To follow for project updates, go to Sandberg on the Ave’s website.
Updates on other building conversions
Recently completed or planned apartment conversions in Tacoma by other developers include the former Washington Building, redeveloped as The Astor, 1019 Pacific Ave., by Unico Properties and Pinnacle Partners of Seattle, and the former Key Tower, planned for redevelopment as Tacoma Tower, 1119 Pacific Ave., by Spokane-based Interurban Development.
While The Astor opened in 2022, the Tacoma Tower project appears stalled, with a mix of voided or canceled permits on file with the city. A permit application for new curbing, sidewalk, ramps, storm drainage and sewer associated with tenant improvements filed in July 2023 is awaiting resubmittal/revisions, according to the city’s online permit portal.
Additionally, the owner-LLC is in litigation with the site’s lender and an architecture firm that worked on the project. Representatives for the developer did not respond to request for a project status update on Wednesday.
Old City Hall, 625 Commerce St., by Tacoma-based Surge redevelopment, is to include small units along with its redeveloped office/commercial space, with its first phase to open this fall, according to its website, and the residential portion next year.
Previous reporting by The News Tribune contributed to this report.
