Under Kent Central LLC, Benaroya acquired the building and adjacent bottling and distribution space from Stroh's Brewing Co. for a reported $19 million. Benaroya envisioned a technology campus on the properties, says Rick Osterhout of Insignia Kidder Mathews, who represented Stroh's in its sale of the property and now will do the same for Benaroya.
Osterhout tells GlobeSt.com that those plans fell by the wayside when Sound Transit, using the threat of condemnation, forced Benaroya last May to sell the 11-acre bottling and distribution property for $24.3 million, leaving the sprawling 209,000-sf building on 4.56 acres but not enough for a tech campus. As a result, says Osterhout, "the asset no longer fits into Benaroya's portfolio."
Publicly-traded Tully's Coffee holds the master lease to the property, which consists of several structures that were built in phases and interconnected. There is believed to be at least five years left on Tully's $50,000-a-month lease. Still, Tully's seems to be looking for a way out--or at least a better deal.
"The corporate headquarters may remain in the current location, but that has yet to be determined," according to a company statement. "A definite decision to relocate the roasting facility will be determined based on terms that may be met with the new owners."
The property is zoned general industrial. Osterhout says if several giant tanks were removed, new levels could be added in a certain section of the development. "It's for a creative investor," he says, "one who wants to own a marquee-type building that's well known."
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