Selling Spokane’s Iconic Parkade Building – Overcoming Complexity to Close a Landmark Deal
The Parkade Building: A Spokane Landmark with a Complex Ownership Structure
In 2020, the Parkade Building, an iconic 1,000-car, 11-floor parking structure with accompanying retail spaces in downtown Spokane, Washington, was successfully sold for $6,950,000. Designed by renowned architect Warren C. Heylman, the Parkade has long been a fixture of the Spokane skyline. The property’s dual-purpose nature, combining retail and parking, added both opportunities and complexities to the transaction. Eric Peterson was one of the key brokers who represented both the buyer and the sellers in this challenging commercial real estate deal, ensuring a smooth and successful closing.
The Challenge: Navigating Ownership Disputes and Operational Uncertainty at the Parkade
The Parkade Building presented significant hurdles to its sale. First, the land lease operator, who was retiring and selling off her other assets, chose not to renew her lease, leaving the future operation of the property uncertain. Additionally, the ownership structure included 34 individual owners, some of whom hadn’t communicated in years. While most agreed to sell, one owner initially refused, and others changed their minds along the way, causing delays.
The inclusion of retail spaces further complicated matters. While these spaces added revenue potential, they also required upkeep and tenant management, which none of the owners wanted to take on. Legal hurdles, such as title work and probate issues, also emerged. COVID compounded the challenge, as parking revenue downtown was at an all-time low due to remote work, and retail spaces faced reduced foot traffic.
The Sale Process: How We Aligned 34 Owners for a Successful $6.95M Off-Market Sale
Facilitating the sale took nearly two years of effort. Countless calls were made to the owners, addressing their concerns, aligning expectations, and ultimately convincing them that selling was the best path forward. The team also worked closely with Spokane County Title, whose expertise and organization helped resolve title issues and ensure a clean transaction.
The sale was conducted off-market, thanks to one owner’s connection with a buyer who already owned properties in Spokane and recognized the Parkade Building’s potential. Despite the complexities, the buyer was drawn to the opportunity to streamline operations and invest in both the parking and retail components of the property.
Buyer Appeal: Downtown Location and Value-Add Opportunity
The buyer saw the Parkade Building as a unique value-add opportunity in the heart of downtown Spokane. The property’s dual-purpose nature—a parking structure with 1,000 spaces and retail spaces offering additional revenue streams—made it particularly attractive.
Located in Spokane’s busy downtown core, the Parkade Building was well-positioned to benefit from future growth in the area. While significant capital investments were required to modernize both the parking and retail spaces, the buyer recognized the long-term potential for increased traffic and revenue.
A Unified Sale: Closing the $6.95M Parkade Building Deal in Spokane
The Parkade Building was sold for $6,950,000, a price that satisfied all 34 owners. Beyond the financial success, the sale brought together owners who hadn’t spoken in years, strengthening relationships that had been strained.
Since the sale, the buyer has made substantial improvements to the property, including enhanced safety measures, a new paint job to modernize its appearance, and upgrades to its parking systems. These changes have positioned the Parkade Building as a modern, functional mixed-use property in downtown Spokane.
Broader Market Context: Spokane’s Commercial Real Estate in 2020
The sale of the Parkade Building occurred during a challenging period for Spokane’s commercial real estate market. In 2020, the COVID pandemic significantly impacted downtown activity, reducing demand for both parking and retail spaces as many businesses operated remotely. However, Spokane’s long-term growth trends and downtown revitalization efforts ensured that key properties like the Parkade Building retained their appeal for investors seeking value-add opportunities in a prime location.
My Role: Navigating Complexity and Delivering Results
This transaction was one of the most complex I’ve ever worked on due to the sheer number of owners and the logistical challenges involved. My role required patience, persistence, and a deep understanding of the Parkade Building’s history and ownership structure. By staying organized, maintaining clear communication, and ensuring all parties’ expectations were met, I was able to keep the deal on track through every obstacle.
Representing both the buyer and sellers required balancing interests and ensuring a fair outcome for all involved. By meeting timelines, addressing concerns, and facilitating transparent conversations, I ensured a smooth transaction that satisfied everyone.
Your Partner in Navigating Complex Real Estate Transactions in the Inland Northwest
The sale of the Parkade Building highlights the importance of perseverance, organization, and collaborative problem-solving in commercial real estate. Despite facing numerous challenges—COVID impacts, title issues, and the coordination of 34 owners—the transaction closed successfully, preserving a landmark property in downtown Spokane.
Are you navigating a complex real estate transaction or considering selling a commercial property? With extensive experience in Spokane commercial real estate, I specialize in solving unique challenges and delivering successful outcomes.
Let’s connect to discuss your goals. Contact me today to explore how I can help you maximize your property’s potential.
