Note: This post has been revised since its initial posting. We will continue to revise this post as we get further clarification from both Security Properties and the property owner.
The Wedgwood Community Council has been informed by Security Properties that it no longer is moving forward with their planned redevelopment of Wedgwood Center, owing to a breakdown in the agreement between Security Properties and the owner of the property. We don’t have all of the details and frankly do not anticipate getting much more detail as the decision is ultimately a business decision between 2 private parties and we have only been able to hear from one side. But, here is what we understand.
Based on our conversation today with Sarah Zahn of Security Properties, it is our understanding that as part of the purchase contract between Security Properties and the owner, which was originally signed in 2022, there were financial obligations and other terms of the contract that Security Properties was required to fulfill at specific dates. Security Properties has been explicit that their intent was to bring grocery back as the anchor tenant of the project. Town and Country was announced last year as the grocer that they were in negotiations with. However, since 2022, the macroeconomic enviornment for development has shifted meaningfully, making it more challenging to to finance new development. This project, including a grocery store, requires a significant commitment from an equity partner. Security Properties had made good progress towards identifying a capital partner to help fund the project, but the market dynamics remain such that obtaining a formal commitment from an equity partner has been a challenge. We understand that Security Properties had attempted to renegotiate the terms of the contract with the property owner, but that was not successful. With finanical obligations in the contract approaching, Security Properties made the difficult decision to terminate the agreement with the property owner.
The WCC has recently spokent to the property owner and anticipates future conversations in the coming days. We understand that given how fresh the decision by Security Properties has been to terminate the agreement, their remains uncertainty in the future of the site. However, we understand that the site has been taken back out to the market to find a prospective purchaser and developer of the site.
This is obviously a disappointment to everyone in the community who was excited about the prospect of bringing grocery back to Wedgwood sooner than later. Fortunately or unfortunately, from our perspective, there is no “fault” or “blame” to be placed here. This was ultimately a calculated business decision between 2 private parties, each with their own motivations, interests, and responses to the greater macroeconomic environment, which is obviously their right. Nevertheless, we are very disappointed in this turn of events for the Wedgwood Center and return of grocery to Wedgwood. We expect that the redevelopment of Wedgwood Center will ultimately happen, but now there are many more questions.
What else do we know?
- The Wedgwood Center site plan had cleared the design review board and was working its way through the city’s Master Use Permit review process. There were no outstanding red flags, critical issues, or fatal flaws that contributed to this decision.
- Town and Country were not in any way a factor in this decision and were excited to expand into the Wedgwood neighborhood.
What’s next?
At this point, we have no idea. But, we’ll continue to be optimistic and work towards bringing grocery back to Wedgwood. We remain committed to working constructively and collaboratively with the current property owner and future developers who demonstrate a genuine interest in returning grocery back to Wedgwood at this site and respecting the goals and vision of the built environment described in the Future 35th Ave NE Plan. It’s also very possible that the land owner reaches an agreement with a different developer who takes the project over the finish line, similar to what happened with the Jasper Apartments when it temporarily died during the Great Recession. We’ll have to wait and see.
The WCC would like to extend our sincere thank you to the entire Security Properties team who showed what true community outreach and engagement looks like. We are grateful to the Security Properties development team who were transparent from the start. We are grateful to Kym Michela who attended loads of community meetings and our community picnic to help answer the community’s questions. We are grateful to the Security Properties design team who brought thoughtful design concepts and materials forward that attempted to mitigate impacts to the neighborhood and honor the community’s architectural and natural history.
We should also thank the property owner who has also been accessible and responsive to the community throughout their ownership of the property, which they’ve held since the early 1980s. We appreciate their ongoing dialogue and communications.
This is quite a shocking turn of events. I was exceptionally impressed by the Security Properties team throughout this process and only hope that should another developer decide to redevelop this property they are even a fraction as transparent as SP was.
I want grocery back in Wedgwood, but not at the expense of the monolithic eyesore they were planning. I bet T&C looked across the street at the vacant rite aid decided that would be cheaper and easier to move into. Maybe that can be our new grocery site?
The Rite Aids is a better spot for grocery store. Less trafffic congestion and more parking.
Disappointing to not have a grocery store, but thrilled for other long-standing businesses —like the Wedgewood Broiler that would close as a result of this project
The challenge for the long-standing businesses is that the owner is still marketing the property and looking to sell it. It still is prime for redevelopment given the age and condition of the buildings. But now, the existing businesses are put in greater limbo since their timeline becomes less certain. This whole thing is already difficult for them and this delay sorta prolongs that.
But, yes, it’s great that the existing businesses are able to stay for longer! I just empathize with them and the uncertainty they’ve lived with for the last 3+ years, which will only continue now.
I for one am happy with this decision. As much as I want grocery back in the area, I was NOT looking forward to the additional 1000’s of cars in the area and no real place to park all of them. Yes there was going to be a garage but as we’ve learned with the apartment complex a block north, most of them choose to street park. Bring back grocery but lets not put up another 5 story building with it.
I am very happy too. not only 5, they were proposing 6 floors!!!
In a city?
I laughed.
Agree.
I never was a fan of this development and hope it goes away in its present form. It appeared to be a developer driven project that looked for multiple design allowances without giving much back to the community. It was simply too large for the scale of the surronding neighborhood and 35th Ave NE. There was a general lack of flexibility regarding site access, density, massing and affect on neighbors to the East. When parties dig in their heels, someone is bound to be the loser. IMHO, the site should be split up into two or more projects, reducing buiding height and density, creating a neighborhood scaled development. -Jim
Agree!! Thanks for bringing my my thoughts to the forefront.
Although this is somewhat of a knee-jerk shock, it is not unexpected with the climate for financing these types of projects. And with a space now available with Rite Aid’s departure that may bring in Town & Country or perhaps even a Trader Joe’s size market. To all the Nimby’s, any type of commercial business needs more density to survive in this economic market, not less density. That’s basic economics 101. So a densified project will still need to be done at that space. And the current ownership is looking at generational change in the ownership. Because change will come, and this was a pretty good project. It included enough parking underground to handle the inflow of people and additional apartment units. But again, businesses need more people and more potential customers, especially with the increased costs of running a business. And these larger projects on developed streets are inevitable and exactly made for these already developed streets. Just look in West Seattle. Otherwise, all single-family homes are going to be destroyed and made to four and six unit townhomes with no parking onsite so there is overflow into neighborhood streets adjacent to these larger streets and that certainly doesn’t help anyone or create a better neighborhood. Better to develop projects on streets that can support this added density. It adds to the tax base which can be used to increase general amenities to the neighborhoods. And it has to be feasible. Ultimately the market killed this. Again, just some fundamental processes and logic. No emotion.
This project did not comply with the neighborhood commercial zoning for this space. It did not comply with the height restrictions proposed in the 35th Avenue Plan. It did not provide parking sufficient to allow one space for each new housing unit. It did not accommodate the Broiler. It kept the property off the market while PCC and Trader Joe’s werr moving forward with plans to build new neighborhood markets in North Seattle (around 20,000 square feet) while Security Propertied clung to plans that envisioned a super market appropriate to an urban center but out of scale with the Wedgwood neighborhood. And it did nothing to alleviate the need for middle income and/or family housing. It looks like Wedgwood has dodged a bullet.
Yep, it is good to see Security Properties pull out. Not the right developer for the Wedgwood Neighbourhood
Yes! I’m so happy not to have that giant building take over our little community and happy to not loose our family owned businesses, including the Wedgewood Broiler!
I don’t see why a stand alone grocery store can’t still go in the old QFC or Rite Aid building
I can share that the existing property owner explored finding a grocery to use the QFC building. It was not successful. Fundementally, 1) the age and condition of the building would require too much investment for a new grocery for it to make financial sense for either party when the property is appriaised as it is and 2) the buidling size is too small for most grocers.
I’m sure there are costs associated with refurbishing the existing buildings, but it’s wrong to suggest the space is too small for other grocers. PCC opened its first “Corner Market” last summer at the base of the Rainier Tower. The store was opened after PCC closed a larger store which it had attempted to operate at that location. The Corner Market occupies 6,000 square feet. The former QFC at 85th measures about 15,000 square feet. (The Rite Aid across the street is about 25,000 square feet.) There may be other reasons why a smaller grocery might not work at that location, but other, smaller groceries are in prospect or are being opened in Seattle. The Wedgwood community should not be led to believe that the only way to restore grocery service at 35th and 85th is to build a six story building filled with small apartments atop a 32,000 square foot grocery.
Moreover, any efforts that may have been undertaken to find a grocer to replace QFC would have occurred before Security Properties obtained its agreement to develop the site. According to the Seattle Times, the property owner has kept the property off the market since then, and Security Properties has compensated the property owner for that. Understandable from the property owner’s point of view. Understandable from the developer’s point of view. But it’s no reason to discourage community advocacy for small scale development now that the property owner has an incentive to find someone new.
I said “most grocers.” That is based on the feedback from both the owner and the developer given their conversations with actual grocers.
Grocery would be great but not the mega development proposed. Personally I am happy to drive to QFC in U.Village or see my neighbors walk across the street out of Wedgwood to go to Safeway if that is the price of keeping new developments out. The community needs to continue to send the clear message that NE Seattle is full and that we do not want new developments, new bike lanes, the dilution of convenient street parking and other unwelcome changes. They can go to neighborhoods who would like them.
William, I say this with all due respect, you do not speak for us all. I for one am very disappointed in this outcome. This is my neighborhood too, and I’m not not happy to drive to QFC in U Village. I want new developments that add value to our neighborhood. I want new bike lanes. I think we need to work together to move forward, and work to make positive changes.
There is definitely a wide spectrum of opinions but the majority of residents stood up against the poorly conceived bike lanes so we could keep 35th Ave NE moving and we do not want it and our street parking clogged with 1000s more vehicles. The proper places for new development in NE Seattle are the U District, Roosevelt and Northgate with some opportunities to redevelop the dilapidated sections of Lake City. We don’t have the room or infrastructure in and near Wedgwood and area I needs only minor tweaks. A moderately sized upscale grocery store and pharmacy would be good additions to Wedgwood and we would probably still have them if the city could control shoplifting. We shouldn’t be held hostage for a ransom of 1000s of ugly apartments and condos to get them back.
This is an unfortunate turn of events, but understandable given the uncertainty of the economy. I would echo what some commenters here have said about how Security was open to listening to the community. We’ll have to see how our new mayor deals with the need for housing and services in the city for next steps. I hope that the property owner and Security can come back together.
I’m disappointed in the NIMBY reaction to the proposed property development. OMG, a big building in the city; who would have thought! Probably the same reaction in 1941 with Albert Balch who built the first housing development in what became Wedgwood. The changes to the Wedgwood Center was well designed to fit into the environment with public spaces and gathering areas. Careful consideration by the developer for saving as many of the existing trees and working with the community. Next developer may build up to street with one solid wall along the entire length. Take a look along 25th across from Universtioy Village as this is what could land here. Change is inevitable.
Lots of comments cheering this news. Be careful what you wish for. We could very easily end up with a six story apartment building with no grocery. Make no mistake, this piece of property will be redeveloped. The owner wants to sell and it’s too valuable to remain a one story building.
Congrats NIMBYs, you did it! Now we all get to keep the decrepit building and no groceries or housing.
As the post states, it was macroeconomic issues that ultimately led to Security Properties pulling out of the purchase agreement. Not YIMBYs or NIMBYs.
Could some of the “macroeconomic issues” have been related to the incidence of vandalism, burglary, shoplifting, homelessness and drug addiction along 35th Ave NE? Investors want to have confidence that there will be a good return on their investment.
No.
This is beyond disappointing. Wedgwood grocery situation sucks and town and cou try would have been amazing.
Personally, I have been hoping for something for the community like a bowling alley in either the Rite Aid building or the old QFC. I know it is unlikely, and I would love a grocery there as well, but I feel that we are missing these types of local paces to gather with a fun activity. I think it would be so perfect. Yes, it doesn’t fill a practical need, but I feel that Seattle is pretty vacant in terms of neighborhood and community creating spaces, which fulfill other important needs.