A Jackonsville, Florida company that has grown into a $6 billion corporation by acquiring and operating grocery store-focused shopping centers now owns “an Entire City Block of Mixed-Use Property” on Capitol Hill.
Regency Centers Corporation announced last week it has purchased the Broadway Market shopping center home to business centered around one of two QFC grocery stores on Capitol Hill’s stretch of Broadway. The publicly traded real estate investment company paid $43 million for the 110,000 square-foot shopping center, property records indicate.
“Regency Centers Closes on an Entire City Block of Mixed-Use Property in Seattle, Washington,” the announcement on the deal boasts of the chunk of land it now owns at Broadway and Harrison.
“This is a tremendous addition to our Pacific Northwest platform, as we continue to grow our business through development, redevelopment, and acquisitions of highly productive urban and suburban grocery-anchored and mixed-use properties,” Regency VP Craig Ramey said in the statement. “Broadway Market already provides a densely populated community with needs that fulfill their lifestyles, and we will make subtle but important changes to enhance this experience and further connect with the community.”
The deal includes the more than 100,000 square feet of commercial space plus 30 residential units, “and 230 stalls of subterranean parking.”
Word of the property being put up for sale by owner Madison Marquette spread this fall as experts estimated the property to be worth around $50 million. Madison Marquette paid $15 million for the market in 1999. In 2011 Madison Marquette partnered with an investment firm to re-capitalize the space under a joint venture agreement.
The 110,000 square foot market has been a cornerstone of north Broadway culture since it opened in the 1920s through several iterations and redevelopments. In the 1980s and 1990s the market was home to dozens of merchant stalls that helped make Broadway the commercial heart of Capitol Hill. As Broadway declined in the late 1990s, many of those businesses left. In 2004, Fred Meyer vacated the building and QFC took over the primary grocery space.
In addition to the locally owned Harvard Market center at Pike and Broadway, Broadway Market will be joined in the next five years or so by major commercial development around the Capitol Hill Station light rail facility. There is also a plan to bring Whole Foods to the corner of Broadway and Madison by 2018 as part of a 16-story, mixed-use apartment project.
So, what did Regency like about Broadway Market? You. “As Washington state’s most dense market, Capitol Hill boasts nearly 28,000 residents per square mile,” the company’s announcement excitedly notes. It concludes:
In 2013 alone, Seattle grew faster than any other major American city by adding close to 18,000 residents. Broadway Market is located within walking distance of the major employment hubs of Downtown Seattle and just east of Amazon’s upcoming new 3.3 million square foot global headquarters.
Apparently, grocery-focused Regency isn’t yet worried about AmazonFresh putting the QFCs and Safeways of the world out of business.