Burien City Council approves $2.75 million sale of Town Square parcels
At Monday night’s session (June 17), the Burien City Council approved a settlement agreement with RECP/UP Burien II LP, owner of three undeveloped parcels at Burien Town Square related to the sale of three parcels referred to as Town Square properties.
The undeveloped parcels are north of the current Town Square condominiums and Burien Library/City Hall between SW 152nd and SW 150th streets. RECP/UP Burien II LP includes the developer and a capital partner that jointly own the properties.
Under the settlement agreement, RECP/UP Burien II LP will sell the properties back to the City of Burien or a third party designated by the City of Burien. In addition, the City of Burien will reimburse RECAP/UP II LLP for planning and design expenses incurred by the owner/developer over the past year.
“The City of Burien has engaged its community in a downtown master plan that will benefit the entire city,” said Matthew Burton, managing principal for UP Burien II LLC. “With time and the right fit, we believe the City will be successful.”
The settlement agreement was unanimously approved 6-0 by the council.
The parcels are the remaining empty lots – around 3.25 acres worth – north of the completed 124-unit Town Square condos, which were originally developed by Urban Partners. When Urban Partners purchased the parcels from the City in 2005, the development agreement required the developer to begin the next phase of the project within two years of completing the first phase, or by July 21, 2011. Urban Partners failed to meet this deadline and still has not commenced construction of Town Square’s next phase.
On April 30, 2012, the City notified the owner/developer, which had since merged with Harbor Properties to form Harbor Urban, that it had defaulted on its development agreement with the City. The City issued a formal written notice of its intent to repurchase the remaining undeveloped parcels. That repurchase was to occur within 180 days.
Under this deal, Urban Partners and its capital partners, Real Estate Capital Partners of New York, will sell the parcels to Legacy Partners, which has a Seattle area office. If that deal does not go through, the city could buy back the property from Urban Partners.
According to the Legacy Partners website:
Legacy Partners is a leading vertically integrated real estate investment manager, owner and operator, with a comprehensive portfolio of commercial and residential assets in the western United States. Based on our significant background and a stable, committed team who live, work and specialize in our core markets, Legacy provides its investors, partners, tenants and residents with the depth of experience, speed of execution and transparency to create superior value.