The Kress Building — soon to be home to downtown Seattle's first J.C. Penney store in 30 years — was sold this week to a New York-based shopping-center investment company for nearly $29 million.

The buyer, Retail Opportunity Investments Corp. (ROIC) of Purchase, N.Y., owns or has an interest in 25 other West Coast shopping centers, including a 49 percent stake in the Crossroads Bellevue mall.

J.C. Penney still has not talked about its plans for the 87-year-old Kress Building, at Third Avenue and Pike Street. But public records show it signed a lease in May for about 48,000 square feet — two-thirds of the building.

ROIC approached the seller, B&W Management of Seattle, about acquiring the property two or three months ago, said Stuart Tanz, ROIC's president and CEO. That would have been after the Penney lease was signed.

"It's a great piece of property," Tanz said. "It's got a lot of historical significance. We're very excited."

B&W's principals, Paul and Donald Etsekson, bought the building in 1994 for about $2.9 million, according to public records. Since then it has undergone extensive renovations: A supermarket opened in the basement three years ago, and the ground floor features a Starbucks and three other food-service tenants.

A document filed with King County by Penney's and B&W suggests the target date for the store opening is March 1. The lease is for 10 years, and Penney's has options to extend it for up to 30 more years.

ROIC's other holdings in the Seattle area include the Canyon Park shopping center in Bothell, Meridian Valley Plaza in Kent and The Market at Lake Stevens, according to the company's website.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com