Microsoft buys Nintendo land

Nintendo of America is feeding a large chunk of land in Redmond to Microsoft, which seems to have a nearly insatiable appetite for office and parking spaces lately.

The unused, 28-acre parcel sits between Nintendo's North American headquarters and Microsoft's RedWest campus, which houses its MSN online unit.

In a brief statement Tuesday, Nintendo was quick to note that disposing of the land has "no connection with the company's recent relocation of its sales and marketing division to Silicon Valley and Manhattan."

The company's headquarters will remain in Redmond. In fact, Nintendo is planning to grow its employment in Washington in Internet technology, testing and distribution, according to the statement.

It currently employs about 1,000 people in the state, including workers at its North Bend distribution facility.

Perrin Kaplan, vice president of marketing and corporate affairs, would not say how many new employees Nintendo will gain locally. But she added that "the company is going to remain really robust, and it's certainly not going to have fewer employees," even after the 80 to 100 workers in sales and marketing relocate.

The property changing hands is north of Northeast 51st Street and west of Highway 520, and provides "a natural fit" with Microsoft's RedWest campus, said Microsoft spokesman Lou Gellos.

Microsoft's long-term plans for the property are unclear. Gellos said it could provide office space for about 2,000 people. But the company is focused now on the three-year, $1.3 billion campus expansion under way on both sides of Highway 520. The project will expand the Redmond campus by about a third.

This acquisition was not contemplated as part of that expansion, "but it certainly has that potential," Gellos added.

In the short term, the 300-space lot on the property will help ease the parking situation at RedWest. A short distance to the south, Microsoft is building an underground parking garage to hold 5,000 vehicles.

The property was assessed for 2008 at more than $26.5 million, according to King County assessment records. Nintendo bought the property in 1987 for $601,277.

Neither company would disclose the sales price. The transaction is set to close in mid-July.

Benjamin J. Romano: 206-464-2149 or bromano@seattletimes.com