The Anchorage Community Development Authority has filed a lawsuit seeking to force the sale of the final privately held interest in the long-vacant former Nordstrom building in downtown Anchorage, saying a minority ownership stake is creating an “impasse” that prevents the property’s redevelopment.
Authority seeks full control to advance mayor’s downtown plan
The three-story building at Sixth Avenue and D Street, which housed a Nordstrom department store until the retailer closed in 2019 after 44 years, has been part of the municipal administration’s public discussion about downtown revitalization. In February, Mayor Suzanne LaFrance’s office described plans to convert the site into an “iconic development that would anchor downtown, support surrounding businesses, and contribute to a more active and welcoming streetscape.”
But municipal officials have never held full control of the property. According to a complaint filed July 21 in Alaska Superior Court, the Anchorage Community Development Authority — represented in the filing by private attorney Darryl Thompson — owns four of the five lots that make up the downtown parcel, while the fifth lot is owned by Hughes Family LLC.
“The Nordstrom Building cannot be ‘walled off’ with a party wall dividing or ‘partitioning’ the building,”
The suit alleges that Hughes Family LLC and an affiliated developer, Anchorage Innovation District LLC, have reached an agreement to develop the minority lot, and that ACDA and the other entities are at an impasse over how to proceed with redevelopment. State business records show Hughes Family LLC is owned by four individuals, including manager Mary K. Hughes. Anchorage Innovation District LLC is owned and managed by entities tied to developer Mark Pfeffer. The lawsuit and public records do not describe a specific redevelopment plan or timetable.
What the filing says and what remains unanswered
The complaint asks the court to compel the sale of the outstanding share so the ACDA — which the filing says effectively controls 80% of the building — can move forward without a physical partition or legal dispute that would constrain redevelopment. The lawsuit frames the issue as a practical barrier to the type of cohesive redevelopment the municipality envisions.
Requests for comment from Hughes Family LLC, Pfeffer Development and ACDA did not yield responses by midweek. The complaint was filed by attorney Darryl Thompson on behalf of ACDA.
| Owner | Interest reported in complaint |
|---|---|
| Anchorage Community Development Authority | 4 of 5 lots (80%) |
| Hughes Family LLC | 1 of 5 lots (20%) |
The suit underscores a rarely discussed but common problem in urban redevelopment: when multiple owners hold contiguous or jointly used parcels, one holdout or disagreement over use can stall projects that require an integrated approach to design, access and financing.
Potential local impacts
Downtown business owners and residents have watched the shuttered Nordstrom property for years. The vacancy has been cited by city officials as one of several downtown challenges the LaFrance administration hopes to address. If the ACDA’s lawsuit succeeds, it could clear the way for a coordinated redevelopment effort under municipal direction or facilitate a sale that gives a single developer the authority to implement a unified plan.
- Redevelopment could increase foot traffic and support neighboring retailers if a mixed-use or retail-focused project moves forward.
- Prolonged litigation could extend the period the property remains vacant, maintaining current downtown vacancy and streetscape concerns.
- Resolution by sale or court order would set a precedent for how Anchorage addresses multipart ownership in other redevelopment efforts.
The complaint does not lay out a specific developer or design for the site, nor does it state a timeline for construction. It does, however, make clear that municipal leaders view the property as central to a broader strategy to make downtown more active and welcoming.
As the case moves through Superior Court, Anchorage officials, property owners and downtown stakeholders will be watching to see whether legal action produces the consolidated control the ACDA says is necessary to move from concept to construction. Until the court rules or the parties reach an agreement, the future of the former Nordstrom building remains in legal limbo.
Public filings are available in Alaska Superior Court records for those seeking further detail on the complaint and the legal arguments advanced by the Anchorage Community Development Authority.
