Fort Washington-based Toll Brothers has paid $40 million for an 11-acre property in Kirkland, Washington, where it is planning to build a townhouse development with commercial space, writes Marc Stiles for the Philadelphia Business Journal.

The property is currently home to two industrial buildings, one of which was the first headquarters of Costco Wholesale.

The buildings, which are roughly 51,600 and 61,400 square feet in size, were previously owned by Systima Technologies, a manufacturer of components and integrated systems for the defense and space market. The company sold the site to an affiliate of Federal Way-based Alco Investment in 2020 for $28.5 million.

A Toll Brothers spokesperson said it is currently too early to provide details on the 115-unit project, including how big the commercial space will be. Zoning for the property allows townhomes and requires commercial space, but there is no minimum amount required.

With housing prices in Kirkland skyrocketing, mixed-use residential is the best possible use of the property, according to the market. February median sale price was a whopping $2.5 million, an increase of 35 percent year over year.

Read more about Toll Brothers and their townhouse development complex in Kirkland, WA in the Philadelphia Business Journal.