One of the last remaining properties tied to the once-dominant Sears empire is officially up for sale — and it sits in one of Washington state’s fastest-growing corridors.
The former Sears site at Overlake Plaza in Redmond is now being marketed for redevelopment, signaling another step in the long unwind of the retail giant’s real estate footprint.
From Retail Giant to Redevelopment Target
The Redmond location, which originally opened in 1971, was among the largest Sears stores of its time — spanning more than 268,000 square feet across over 14 acres. The store closed in 2018, and demolition was completed in 2022.
Now, nearly four years later, the property is being positioned as a large-scale mixed-use redevelopment opportunity in a high-demand area near the Overlake Village light-rail station and Microsoft’s headquarters.
Who Owns the Property Now?
The site is owned by Seritage Growth Properties, a real estate spinoff created in 2015 to acquire more than 200 properties nationwide from Sears Holdings, including former Sears and Kmart locations.
Sears Holdings was formed in 2005 following the merger of Sears and Kmart, at one time operating around 3,500 stores nationwide. Today, Sears has dwindled to just five U.S. stores, while Seritage has been gradually selling off its remaining assets.
According to company statements released late last year, remaining properties are expected to be marketed and sold throughout 2026 and beyond, depending on market conditions.
What Makes This Redmond Site Valuable?
The Overlake property is not just another empty retail lot. It comes with several major advantages already in place:
- Approved development agreement vested through 2039
- Completed environmental review
- Finalized master plan
- More than $21 million already invested in infrastructure
- 6.9 net developable acres within a 14-acre district-scale plan
Zoning allows for flexible mixed-use development, including:
- Multifamily residential
- Retail
- Hospitality
- Senior living
- Office space
Developers can allocate uses across parcels, giving investors significant flexibility.
A Strategic Location in a High-Growth Corridor
Located in a transit-oriented district, the site benefits from proximity to light rail access and one of the region’s largest employers. This positioning makes it especially attractive for housing and mixed-use development.
Industry experts note that large, single-use retail sites are increasingly being transformed into mixed-use communities. With a growing shortage of workforce housing across King and Pierce counties, redevelopment opportunities like this are drawing heightened interest.
No Price Tag — Investors Asked to Submit Proposals
While marketing has officially begun, no pricing guidance has been provided. Instead, interested investors are being asked to submit proposals by late March.
In today’s volatile real estate climate, large-scale redevelopment projects with entitlements and infrastructure already in place are rare. The Redmond property represents one of the last significant remnants of Sears’ once-massive retail footprint — now poised for a completely new chapter.
As the retail era fades, mixed-use urban redevelopment appears ready to take its place.
