Ryan Companies has opted not to proceed with an office project in Tukwila’s Prato District, citing market softness. The developer allowed their ground lease option to lapse in 2022 but continues to monitor the site. Prato District represents a significant development opportunity for Segale Properties, which has long-term ambitions for the area.
Developer Ryan Companies has decided not to move forward with an office project aimed at attracting technology tenants to Segale Properties’ Prato District in Tukwila, despite some recovery in the Seattle metro commercial market over the past two years. The firm let its option on a ground lease for the 38-acre site lapse in 2022 due to perceived market weaknesses. Ryan Companies continues to monitor the situation and maintain communication with Segale Properties, albeit without immediate plans for development.
The Prato District is a significant 250-acre area in Tukwila, Washington, prepared for development with the potential to accommodate up to 10.3 million square feet of mixed-use space. The development agreement with the City of Tukwila permits structures up to 120 feet high, suitable for various uses including residential, commercial, and light manufacturing. The Segale family has been strategically acquiring land for this project, which has historical roots dating back to 1909 with Italian immigrant Louis Segale.
In summary, Ryan Companies has opted not to pursue the Prato District office project due to market conditions, despite the long-term ambitions of Segale Properties for the area. The cautious approach reflects broader trends in the commercial real estate landscape, as the firm balances potential opportunities against market stability. Segale Properties continues its efforts to develop the largest pad-ready land site in the West Coast metro area as future conditions may improve.
Original Source: therealdeal.com
Leave a Reply