However, the city has been doing a major redesign of the shoreway/Rt.2 which runs just north of Gordon Square, and right now they are knocking out a huge hole in the bluff that used to separate Gordon Square from Rt. 2 and they are adding a whole new entrance/exit which will allow direct access to the area right off Rt. 2. 

Unless you have your own entrance to the basement and can convert the property into multi-property.

Does the basement have two separate entrances/exits?

Get the numbers, vacancy rates, gross income, expenses, taxes, insurance, terms of leases, property condition, traffic count on the entrance road, competition in the area and we can look at it......but, it's probably overpriced. :)

It is good in a sense, I less worry about fire safety and it saved me about $8000-10000 to add full equipped kitchen and laundry on site.I have 1 bedroom in my basement, and for the entire basement, I have an independent entrance and a stair goes to upstairs.

Exit strategy is as important as entrance price point.

Right now it has 2 escape windows and one entrance.  

I see quite a few homes in our area converted to have an additional dwelling unit, or a "mother in law" unit with a separate entrance.  

I can't make a rental deal pencil within Seattle proper if there isn't a second entrance/kitchen/dwelling unit. 

Seems your best bet at this point is to "help" him get his separate entrance, even though it's cheaper for him to be denied, it seems.