Bellevue: Lincoln Square II

[Skian]

COB major projects report for 2nd quarter 2008 lists the hotel component as 200 rooms.

[Method101]

Posted this in the Bellevue Development News forum, but figured it should go in here as well:


image from the Bellevue Collection website

[Jay_Z]

Lincoln Square expansion delayed

By Eric Pryne - Seattle Times business reporter

Kemper Development has pushed back the timetable for its proposed Lincoln Square expansion in downtown Bellevue by at least 15 months.

The company had planned to break ground on the high-rise, mixed-use project by next spring. But Chairman and Chief Executive Kemper Freeman Jr. said Monday that construction won't start until summer 2010 at the earliest.

He attributed the delay to the slowdown in the local condo market and to logistic complications the company would have encountered if it had expanded Lincoln Square while it was building a major addition to its Bellevue Square mall across Bellevue Way Northeast.

"We thought we could do it all at once," Freeman said. "We finally said, 'That's nuts.' "

Kemper Development's plans for Lincoln Square call for two towers atop a three-story base containing more than 350,000 square feet of retail and restaurants.

One tower would house 200 condos and a 120-room luxury hotel. The other tower would have about 545,000 square feet of office space.

The site is at the northeast corner of Bellevue Way and Northeast Fourth Street.

Across the street, at the northwest corner, Kemper plans a "luxury village" wing for Bellevue Square, called The Bellevue, with more retail and another high-end hotel. A 500-stall mall parking garage now occupies the site.

Building The Bellevue and expanding Lincoln Square at the same time could have created parking problems for Bellevue Square, Freeman said.

The current plan calls for work on The Bellevue to start first — sometime in 2009, perhaps as soon as next spring.

When the existing garage is taken out of commission, the Lincoln Square expansion site will become a temporary parking lot with about 400 stalls, Freeman said.

It should take about 15 months to finish The Bellevue's seven-level underground garage, he said.

When that garage is available, work on the Lincoln Square expansion will begin.

"This thing is like a juggling act," Freeman said.

The Lincoln Square expansion site was home for 45 years to the downtown Bellevue Safeway. The grocer moved out last week, into larger space in the new Avalon Meydenbauer mixed-use project across Northeast Fourth.

The once-hot regional condo market has cooled in recent months, with many proposed projects delayed.

By pushing back the Lincoln Square expansion, "I think we'll be on the front end of the next wave," Freeman said.

The delay probably makes sense, said Dean Jones, principal with Realogics, a Seattle condo-marketing firm.

"He's got time on his side and he owns the property," Jones said. "A lot of developers are taking a breath. There are new rules in real estate now — the credit crunch, rising construction costs."

Freeman also may want to wait to gauge market response to Schnitzer West's Bravern project, another big retail-residential-office development in downtown Bellevue that is scheduled for completion next year, Jones said. Jones' firm is marketing The Bravern's condos.

Freeman said he regrets that he can't build the office portion of the Lincoln Square expansion sooner, to take advantage of a tight Eastside market.

With one exception, all the office buildings under construction in downtown Bellevue are completely pre-leased. Microsoft has taken more than 1 million square feet.

In addition to The Bellevue and the Lincoln Square expansion, Kemper is building a 351-room addition to the Hyatt Regency at its Bellevue Place development.

That project is scheduled to open in about a year.

[CityView Jim]

This all makes sense. Tear down Safeway and make a surface parking lot. Tear down the Penneys/Macy garage and build 'The Bellevue' (dumb name!). Then begin the Lincoln II.

Interesting, too, I never realized how big Kempers expansion was going to be. In the newws article is a map showing the office tower taking space where CPK and a surface lotcurrently sit. The new project will surround the Bellevue Art Museum. I thought it was just the Safeway lot only.

[captredbeard]

If I was Kemper I would skip the mall expansion and build two or three office towers, MS would almost certainly lease them before they were completed. It seems like a better bet then expanding retail right when the economy is pulling back AND you have the Bravern to compete with.

[CityView Jim]

Originally Posted by captredbeard

If I was Kemper I would skip the mall expansion and build two or three office towers, MS would almost certainly lease them before they were completed. It seems like a better bet then expanding retail right when the economy is pulling back AND you have the Bravern to compete with.

I think that's exactly WHY Kemper want to build his luxury wing.

[NW Mike]

It all sounds like a smart move.

[horatio_the_hermit]

not only does the delay allow the project to be made taller if height limits are raised in the next few years, but it also gives kemper some time to hire a real architect for that trashy office tower.

[Bond James Bond]

I'm not surprised.

[BellevueBoy]

Disappointing news but not too surprising. If this project AND The Bellevue along with The Bravern were built at once, there's no way the city could absorb all that new retail space within such a short time span. It's best to spread it out. Like Horatio says, lets hope by the time Kemper moves forward with this project that the city would've pulled their heads out of their asses and raised the height limits.

[bgwah]

We keep talking about heights being raised eventually here on this forum, but I never hear about it anywhere else. I never read in the news about there being calls for allowing taller buildings in Bellevue, nor I have I heard anything about the city actually considering it. Has anyone else?

[horatio_the_hermit]

From my recollection, a forumer within the last 6 months or so wrote a letter to the Bellevue City council regarding height limits and recieved a response stating that the council would be discussing the issue within the year. Maybe I dreamed it.

[taiwanesedrummer36]

Yeah, I remember too...

Seriously, Bellevue should raise the height limits. Looking at the new Avalon Meydenbauer complex, for example, I can't help but think it looks a little short when compared to its surroundings (i.e. Bellevue Towers, Lincoln Square, Bellevue Pacific Tower, etc.), and also considering its prime location.

On another note, someone should rename "The Bellevue Collection" (yuk!) into "Kemper's Korner" (hee hee); yeah, I know both sound terrible, but the latter is funny

[NW Mike]

Thats a good one!

[Capitol Hill]

Originally Posted by taiwanesedrummer36

Yeah, I remember too...

Seriously, Bellevue should raise the height limits. Looking at the new Avalon Meydenbauer complex, for example, I can't help but think it looks a little short when compared to its surroundings (i.e. Bellevue Towers, Lincoln Square, Bellevue Pacific Tower, etc.), and also considering its prime location.

My understanding is you'd have a huge uprising trying to raise the height limits that close to the single family neighborhoods to the north. If you wanted more density centrally downtown, that might have more support, but not too far north of NE 10th.

[just4ivaylo]

I hate the new Safeway. It's huddled into a tiny space and the street level parking under the apartments is really tight.

[taiwanesedrummer36]

Originally Posted by Capitol Hill

My understanding is you'd have a huge uprising trying to raise the height limits that close to the single family neighborhoods to the north. If you wanted more density centrally downtown, that might have more support, but not too far north of NE 10th.

Well, Avalon Meydenbauer is located SOUTH of NE 10th, and is quite a-ways away from single-family homes...(maybe you're thinking of the other project?)

Originally Posted by just4ivaylo

I hate the new Safeway. It's huddled into a tiny space and the street level parking under the apartments is really tight.

Yeah, I was just there today. It's okay (i didn't win a free iPod though ), but suburban Safeways are better

[Skian]

The new safeway is so much better than the old Mega 7-11 format.

It reminds me of the QA Larry's market, when it first opened.

[Capitol Hill]

[QUOTE=taiwanesedrummer36;22260168]Well, Avalon Meydenbauer is located SOUTH of NE 10th, and is quite a-ways away from single-family homes...(maybe you're thinking of the other project?)


my bad, I was. Just ignore me.

[sequoias]

Originally Posted by taiwanesedrummer36

Yeah, I was just there today. It's okay (i didn't win a free iPod though ), but suburban Safeways are better

Hey, at least Downtown Bellevue has a safeway. Downtown Seattle don't even have a major grocery store that compares to QFC or safeway.