Cowles Unit Buying Former Penney Store

A Cowles Publishing Co. subsidiary is in the process of buying the former J.C. Penney building in downtown Spokane.

“It’s a done deal,” said Nancy Goodspeed, a consultant for River Park Square.

The Cowles subsidiary that bought the building has not officially been named, Goodspeed said, but papers finalizing the deal should be signed before the end of the year.

The purchase of the Penney’s building displays faith in the future of downtown Spokane, said the developer of Crescent Court, downtown’s other major retail complex.

“They wouldn’t make such a move if they weren’t feeling as confident about the future of downtown as we are,” said Tom Barbieri of Goodale and Barbieri. “This is big news.”

It’ll also put the building back into local hands, said Dave Black, president of James S. Black and Co., which has managed the Penney’s building for two years.

“It complements the Cowles family holdings across the street and gives them flexibility,” Black said.

Cowles affiliates have held a purchase option on the building for two years. The decision to buy the building was made on Oct. 31, the day the option expired, Goodspeed said.

Though no definite plans have been made for the building, it will provide more flexibility as the development of downtown continues, Goodspeed said.

Cowles affiliates Citizens Realty Co. and Lincoln Investments company took out the option to buy the Penney’s building during planning for the redevelopment of River Park Square because they were not sure what type of space they would need, Goodspeed said.

Since then, River Park Square’s redevelopment plans have been solidified and do not include the Penney’s building, Goodspeed said. But the building is still “key in the development of downtown.”

Though all negotiations have not been completed with tenants, the first phase of River Park Square’s redevelopment plan includes demolition of the west block, and construction of a new Nordstrom’s store, other retail space, a parking area and an atrium over Post Street, Goodspeed said.

Goodspeed would not disclose the purchase price, but said the Penney’s building was bought from Bellevue-based HIP-1 Limited Partnership. Past owners of the building include the Cowles family once before, J.C. Penney, and Sabey Corp.

Burlington Coat Factory, the only tenant presently in the Penney’s building, had not been notified of the sale on Tuesday afternoon, said Operations Manager Bill Teter. The company, which signed a 20-year lease in 1991, does not anticipate any change in its business because of the sale.

“We just send our checks to a different person,” Teter said.

, DataTimes