The year 2026 in Wedgwood began with the shocking announcement that a proposal for redevelopment of the NE 85th Street shopping center, had been suspended – at least for now.

In 2022 a developer started the process to file plans with the City of Seattle for a new complex which would have apartments on upper floors above a new grocery store.  By the end of 2025, the plan seemed to be moving forward except for concerns about the overall economic environment in the USA.  The developer needed an investment partner and none could be found as of 2025, due to economic uncertainty.  For this reason, plans for the new shopping center at NE 85th Street, were put on hold in January 2026.   At this writing, all of the stores in the shopping center are still open, including the beloved Wedgwood Broiler restaurant.

In 2021 a US Bank branch office closed and moved out of 8702 35th Ave NE, and in 2022 Homestreet Bank purchased the building as a “just in case” plan.  Homestreet/Mechanics Bank in the NE 85th Street shopping center, would have had to move out if the redevelopment plan were to go ahead in 2026.

8702 35th Ave NE, originally Peoples Bank, then US Bank, this office closed in 2021. Photo by Valarie.

In the meantime, another change has come to Homestreet Bank – the company was acquired by Mechanics Bank in 2025.  Signage at the Wedgwood branch changed in 2025 and now, in February 2026, it appears that the moving plan will go ahead.

The Homestreet/Mechanics Bank at its present location in the shopping center by the Wedgwood Broiler at NE 85th Street. Photo courtesy of JRV.

The little building at 8702 35th Ave NE is getting upgrades to the interior only, according to permits filed with the City of Seattle in 2025-2026.

This building has an unusual history.  The building was constructed in 1961 at 1011 NE 63rd Street and was originally called Peoples Bank.  In 1971 the building was moved to its present location at 8702 35th Ave NE.  In 1987 a merger changed the company name to US Bank.

Property card info showing the former address, 1011 NE 63rd Street. The building was moved to 8702 35th Ave NE in 1971. This is the building which, in 2026, is being rehabbed to be the new Mechanics Bank office.

Wedgwoodians in 2026 are concerned for the health of the business district as there are some empty buildings, most prominently Rite-Aid (closed July 2025) and the former QFC grocery store (closed 2021).   Homestreet/Mechanics Bank does a good business in home loans, so it is good news that they will stay in the neighborhood, even if in a much smaller office space at 8702 35th Ave NE.

Renovation work going on at 8702 35th Ave NE in February 2026. Photo courtesy of JRV.