A significant commercial property in Redmond, Washington, formerly the site of a large Sears department store, is now officially on the market. The 14-acre plot, located in the Overlake Plaza, represents a major redevelopment opportunity in a rapidly growing area known for its proximity to major tech employers, including Microsoft's headquarters.
Seritage Growth Properties, the real estate company that owns the land, has enlisted Seattle-based advisory firm Heartland LLC to manage the sale. The offering comes with a pre-approved master plan and a development agreement that simplifies the path forward for potential investors.
Key Takeaways
- The former Sears site in Redmond, Washington, covering 14 acres, is for sale.
- The property is being marketed by Heartland LLC on behalf of owner Seritage Growth Properties.
- It includes a vested development agreement through 2039 and flexible mixed-use zoning.
- Over $21 million in infrastructure improvements have already been completed on the site.
- The sale reflects a broader trend of repurposing large retail sites for modern mixed-use development.
A Strategic Location for Redevelopment
The property's location is one of its most compelling features. Situated near the Overlake Village light-rail station, it offers excellent transit connectivity, a key factor for modern urban development. This transit-oriented design is central to the site's master plan, which aims to create a vibrant, walkable community.
The land is part of a larger district-scale plan, with 6.9 net developable acres available for construction. The zoning regulations are notably flexible, permitting a wide range of uses. Developers could pursue projects including multifamily residential buildings, retail spaces, hotels, senior living facilities, or office complexes.
This flexibility allows potential buyers to adapt their proposals to current market demands, which increasingly favor mixed-use environments where people can live, work, and shop in the same area.
From Retail Giant to Real Estate Opportunity
The Redmond Sears store opened its doors in 1971 and was one of the chain's largest locations, spanning over 268,000 square feet. After decades of operation, the store closed in 2018 as part of the retailer's nationwide decline. The building was demolished in 2022, clearing the way for a complete reimagining of the property.
Investment and Infrastructure Already in Place
A significant advantage for any prospective buyer is the substantial preliminary work that has already been completed. Seritage has invested more than $21 million in foundational infrastructure, reducing the initial capital required from a new developer.
Furthermore, the property comes with an approved development agreement with the city, which is vested through 2039. This agreement provides long-term certainty and streamlines the permitting process, removing many of the regulatory hurdles that can delay large-scale construction projects. The environmental review for the site has also been finalized.
The development agreement is valid for another 15 years, offering a stable planning horizon for a multi-phase project.
Heartland LLC and Seritage are not providing specific pricing guidance for the property. Instead, they have invited interested investors to submit proposals, with a deadline of March 27. This approach suggests they are seeking a partner with a compelling vision for the site's future, not just the highest bidder.
The Broader Trend of Repurposing Retail Spaces
The sale of the Redmond Sears site is part of a larger national trend. As traditional big-box retail centers and office parks face challenges, many are being redeveloped into mixed-use communities. This shift addresses changing consumer habits and a critical need for more housing, particularly in high-growth areas like King County.
"In the volatile real estate market that we have been in, many single-use properties like big box retail centers and office parks are increasingly viable for mixed-use redevelopment. There is a critical shortage of workforce housing in both King and Pierce counties, which is opening up new possibilities for redevelopment."
This trend is driven by a desire for more sustainable and efficient land use. By converting underutilized commercial properties into dense, transit-accessible neighborhoods, cities can accommodate population growth without expanding their suburban footprint.
The Legacy of Sears and Seritage
The story of this property is intertwined with the decline of Sears. Seritage Growth Properties was formed in 2015 specifically to manage and redevelop a portfolio of over 200 properties from Sears Holdings, the parent company of Sears and Kmart.
At its peak after the 2005 merger, Sears Holdings operated around 3,500 stores. Today, only a handful of Sears stores remain open in the United States. In 2022, Seritage announced its plan to liquidate its assets, leading to the sale of properties like the one in Redmond.
The company stated in November 2025 that its remaining assets would be marketed in 2026 and beyond, depending on market conditions. The Redmond offering is one of the first major steps in this final phase of the company's lifecycle, transforming a relic of 20th-century retail into a forward-looking 21st-century community hub.
