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A popular dive bar in Ballard could be torn down for an apartment complex

Plans were filed with the city for a 16-unit apartment complex with restaurant space on the first floor.
Credit: KING 5 Evening
The Waterwheel Lounge in Seattle's Ballard neighborhood in 2018.

SEATTLE — A beloved dive bar in Seattle’s Ballard neighborhood is slated for development with plans to build a 16-unit apartment complex where Waterwheel Lounge currently stands.

The developer, Madrigal Apartments, filed plans with the city in April to develop the property at 7034 15th Ave. NW.

The project plans include four apartment units per floor with amenity areas on decks over 937 square feet of restaurant space on the first floor facing 15th Avenue Northwest. There would be five parking stalls for cars and space for 16 bikes, according to the developer.

Madigral Apartments is seeking community feedback through an online survey as part of required outreach in advance of the design review. The survey was open through Aug. 25.

If the project timeline holds, construction is expected to begin in 2025 and be completed in 2026.

Waterwheel Lounge was sold to local investors for $725,000 in 2022, as reported by the Daily Journal of Commerce.

The bar has been around since 1974, according to owner Carole Nicholas. Regulars described the spot to KING 5 Evening as an old-school dive bar with entertainment seven days a week, including karaoke, trivia, bingo and live music. The bar also has a PAC-MAN arcade machine and board games.

Eclectic decorations are part of the charm. In the bar's early history, customers would bring bells to hang up inside. Additionally, a gong can be heard ringing multiple times throughout the day.

"It's the friendliest dive bar in Seattle," Stan Sele, a regular, told KING 5 Evening in 2018.

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