A second group of Korean-Americans hopes to build a mega mixed-use project in Federal Way.

Edgewood-based Lander Korus Inc., has been working since last fall to take over a four-acre site where a Canadian developer had proposed building a $250 million project called Symphony.

Lander Korus has until the end of the month to acquire the property from the city of Federal Way. It plans a $500 million, twin-tower project with 544 condos and 262,000 square feet of retail. Each tower would be 30 stories.

UKUN Architects Planning & Engineers Co. is designing the project.The developer says construction could begin this summer. The general contractor will be either Hyundai AmCo or Samsung Construction Co.

This is the second high rise proposed for Federal Way by Korean-American investors. Two weeks ago a limited liability company, Twin Development, announced plans for Sky Hotel and Residence, a 45-story project.

Both plans suggest recovery for the Puget Sound region's commercial real estate industry could run through Federal Way by way of Korea. The sites are across the street from each other, and both projects rely heavily on Korean money as well as Federal Way and South King County's large Korean-American population. They're the only projects of that size to be announced in the Seattle area in the last year or so.

If you're wondering why Federal Way, you need to know the city is “kind of the capital of the Korean diaspora for the Northwest,” says Patrick Doherty, the city's economic development director.

The U.S. Census Bureau estimates the Korean population of Federal Way is nearly 6,100 out of a total population of nearly 85,500. The city has had a Korean-American mayor and is home to a lot of Korean shops. There are Korean-language media.

Federal Way hosts what Doherty says is the region's largest Korean-American festival in the Northwest. The city's Web site has a page dedicated to the Korean community.

Condos, retail

Given the state of the Seattle condo and retail markets, people might wonder whether the Federal Way developers are over reaching.

In the 1.76-million-square-foot Lander Korus project, condos are projected to sell for between $358,000 and $2 million. Each tower would house as many as 88 stores and restaurants.

The Korus Lander proposal sheet mentions retailers ranging from elegant shops, “top-class” eateries, Korean fashion outlets, and health shops, including an Eastern medicine clinic.

In downtown Seattle, a developer last week announced plans to auction off 18 condos. Bidding for the $2 million penthouse will start at $995,000. Retail leasing experts say in outlying suburban markets, the retail vacancy rate is above 10 percent.

Korus Landers' sees things differently.

Chairman David Chung says the Korean economy has emerged from the recession, and Koreans have about $3 trillion to invest. Kyoungsoo Seo of Lander Korus said Korus Lander is working to raise $20 million for the project from Korean investors.

Like Twin Development, Korus Lander is banking on the EB-5 Immigration Investor program to fund much of its project. The program grants foreigners permanent resident status in exchange for investing in projects. Last fall, the city was designated a regional program center by U.S. Citizenship and Immigration Services. It's expected investors will pay $1 million or more to get green cards.

“That's a main target,” said Seo.

Chung said the Korean population of Washington state is growing as Koreans move here looking for a more tranquil setting. That, he said, is the draw of the Puget Sound region.

Race for funds?

Is there enough investment money in Korea for both projects? “I'm not sure about that,” said Seo.

Lander Korus officials have met with Twin Development representatives. Both companies are looking for the same type of investment money. Seo thinks the race would be decided by who gets the money first.

Lander Korus is banking on the quality of their homes, which will have high-tech automation systems. Seo and Chung compare the quality of their project to Bellevue Towers, the splashy but struggling 539-unit project in downtown Bellevue, but say theirs is better.

Owners in the Lander Korus project, for instance, will be able to cook remotely.

“You just call and your food is ready,” said Seo.

Another plus for the Lander Korus project, he said, is that Federal Way has given the project a 10-year tax exemption.

Foreign investors helped fuel development in Vancouver, B.C. British Columbia-based United Properties, which was trying to develop the Federal Way site that Korus Lander is now chasing, built a project in Vancouver with investors from Hong Kong. Doherty said United “sold the entire building in one evening.”

United President Victor Setton could not be reached for comment.

In 2007, Federal Way officials OK'd an agreement with United Properties. The company was to buy the land for $6.2 million and build four towers, ranging from 16 to 24 towers.

But then, Doherty said, “The economy went south and [United] went north.”

About the same time, Lander Korus officials announced plans to take over the project. Lander Korus paid the city $24,000 to cover the carrying cost and has until the end of March to come up with about $3.9 million for the phased purchase. The remainder would be due when the first phase of the project opens, according to Doherty.

Lander Korus has revised the design, so it will have to work with city officials to review the changes, which Doherty said may or may not require City Council approval. It depends on the scope of the changes. That would re-start the land-use permitting process, which United had almost completed.

Lander Korus is hiring other firms to help with marketing and other assignments, and Seo said the plan is assign work to some American firms.

Seo declined to name the companies that might work on the project. “We are not fully ready to say. The investors are still thinking,” he said.