A Seattle-based real estate investment and development firm and the City of Auburn officially exchanged downtown properties on two blocks south of City Hall Thursday afternoon.

While the Stratford Company transferred to the city all of the Crites-Huff block between First Street Southwest and A Street Southwest – with the exception of a house on the southeast corner – the city gave up the parking lots north and east of The Sunbreak Café between South Division and First Street Southwest.

The transfer puts everything on the block immediately south of City Hall into Stratford’s hands except for the Sunbreak Café, freeing it to proceed with its major redevelopment project by next spring.

Stratford’s project, which city officials expect to catalyze downtown redevelopment, will be a five-story, mixed-use development with commercial uses like retail and restaurants on the first floor and residential units above.

Auburn’s Downtown Redevelopment Committee, made up of Councilmembers Lynn Norman, Gene Cerino and Sue Singer, approved design guidelines for Auburn Junction, comprised of the Stratford Company’s project and that proposed by Alpert International. The design guidelines outline project goals such as a bicycle network, on-site renewable energy sources and access to public spaces.

Auburn Junction will be made up four blocks south of West Main Street, situated as follows: north of Second Street Southwest; west of Auburn Avenue; and east of A Street Northwest.

City officials and Stratford representatives signed the purchase and sale agreement July 7.

Stratford specializes in value-added real estate investments in senior housing, multi-family residential, mixed-use, commercial and master planned developments.

“This is another piece in the downtown redevelopment over a six-block area,” said Auburn Mayor Pete Lewis. “One of the key features of it is it must tie in the old Main Street and the new development.

“So here’s where we are today: Auburn Regional Medical Center’s parking garage is under construction north of City Hall; demolition and onset of construction on Tavern Row is expected by the end of the year; Stratford will start by April of 2009; and the two to three blocks project under Alpert International will start in the middle of 2010,” Lewis said. “Things are starting to move.”