By Alex Girda, Associate Editor
Three years after excavation started and later stalled, a mothballed mixed-use project in West Seattle is on the brink of going forward. An affiliate of Madison Development Group L.L.C. paid $32 million in a foreclosure auction Oct. 7 for Fauntleroy Place, a West Seattle parcel that has become known as “the Hole.”
According to information on its Web site, Madison Development is planning a mixed-use project on the parcel, including 180,000 square feet of apartments and 64,000 square feet of retail. The project follows a plan by the project’s original developer, BlueStar Management Inc., to build Whole Foods and Hancock Fiber stores and 185 residential units, which is located at 3922 S.W. Alaska Street.
Construction was still in the early stages when BlueStar’s financial woes stalled the original project. The footprint of the store was covered with a protective plastic tarp, creating an unsightly landmark that residents disapprovingly nicknamed “the Hole.” The project’s suspension set off a series of legal maneuvers. Unpaid contractors started foreclosure proceedings on the property, and a court-ordered auction was originally scheduled for February.
Madison Development stepped in earlier this year, filing an appeal to halt the sale, and put up a $7.7 million security deposit to cover the liens. When the foreclosure auction was held earlier this month, the Madison affiliate, 3922 S.W. Alaska L.L.C., was the sole bidder.