In addition to the Ivar’s location, the property also holds Ye Olde Curiosity Shop, Cherry Street Coffee, a Harley-Davidson shop and the Simply Seattle store. The businesses will remain under leases of various lengths.
The property that houses the Ivar’s Acres of Clams restaurant and other waterfront businesses has been sold for $39.5 million, though the well-trafficked eatery and its neighbors are staying for the long haul.
Los Angeles-based A.F. Gilmore, which manages properties such as the Los Angeles Farmers Market, closed on the deal Wednesday for the Pier 54 site that Ivar’s has owned for more than 40 years.
Ivar’s President Bob Donegan said the seafood chain, which opened there more than 70 years ago, has signed a 29-year lease to remain at the pier.
The restaurant closed a few years ago and reopened in July 2015 after a significant renovation and reconstruction of the waterfront’s seawall. Ivar’s plans to use proceeds from the sale to pay down debt from the construction, as well as pay taxes and “as a little bit of retirement money for the company,” he said.
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It’s also looking at using the funds to expand. Ivar’s execs have identified nine possible new locations around the Puget Sound region but have struggled to find the right lease.
Donegan said the other shops at the pier have signed long-term leases, too.
Ye Olde Curiosity Shop, Cherry Street Coffee, a Harley-Davidson shop and Simply Seattle will all have leases ranging from 10 to 15 years, he said. A 25,000-square-foot office space on the second floor is also close to being filled, he said.
Ivar’s put the Acres of Clams restaurant and the Salmon House property on Northeast Lake Way up for sale a year ago, hoping to take advantage of the hot real- estate market. The Salmon House sold for $13.73 million in December, and Ivar’s is also leasing back that property. It has a similar lease-back arrangement at its Mukilteo Landing location that the company sold early last year.
Donegan said it had seven interested buyers in the Acres of Clams property and picked A.F. Gilmore as the buyer because of its financial offer, its experience in the customer service business and the fact that it’s not a short-term investment property flipper.