Watermark is Selling its HQ

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Watermark is selling its HQ

Residential and office towers will go up on block

Thursday, April 13, 2006

By BILL VIRGIN
P-I REPORTER

Watermark Credit Union plans to sell its 30-year-old headquarters building at Eighth Avenue and Stewart Street in downtown Seattle, clearing the way for a developer to build three towers -- two with offices, one for condominiums -- on that block.

The Credit union is negotiating with Schnitzer Northwest for the sale of the quarter block on which the developer plans a 32- story residential tower with about 275 condos. Construction could begin in the middle of 2007.

Schnitzer has also submitted plans to the city for two other parcels on the block, according to Watermark. At Eighth and Virginia, it is planning a 30-story office tower, while at Ninth and Stewart Schnitzer is proposing a 14-story office building. Schnitzer officials did not return messages Wednesday seeking comment.

Watermark plans to temporarily move its main branch to the Tower Building at Seventh and Stewart. When the condo tower is complete, Watermark will move its branch into ground-floor space in the new building.

Jerry Sparrow, the credit union's marketing manager, said Watermark wanted to keep a branch in the area. "So many of our members are used to banking here," he said.

That includes employees at Qwest, the telephone company, which has an office tower nearby. Watermark was once known as Seattle Telco Credit Union.

As for Watermark's headquarters, Sparrow said the credit union is looking for about 40,000 square feet of space downtown, defined roughly as from the stadiums to Lower Queen Anne. Watermark has about 100 employees at its headquarters building.

The Schnitzer developments would be the latest in a flurry of development in the Denny Triangle that includes condo and office projects and a new federal courthouse.

"Due to the extensive development in the area, now is the optimum time for the credit union to sell its property," Watermark told its members in a newsletter received this week.

Watermark doesn't know yet how much it might get for the sale of the headquarters building, but the capital it raises would be "put into more branches for our members," Sparrow said.

Watermark plans to open branches in Shoreline and Burien this year, bringing its total to seven, and would like to add more.

At the end of 2005, Watermark had $443 million in assets and 70,700 members.