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Sale/Lease Back Deal Is Mutually Beneficial

SEATTLE-A forest products company has sold a Class A office building to private investors for $8.7 million and then leased back the building for five years.

By Michelle Savage | Updated on June 28, 2002

SEATTLE-The Weyerhaeuser Company, a forest products company, has sold the Park Center II office building in Federal Way for $8.7 million to private investors, the Hokanson family of Mercer Island.

However, Weyerhaeuser has no intention of leaving the three-story, Class A office building. It has signed a five-year agreement to lease back the building’s nearly 70,000-sf of office space from the Hokansons.

“This transaction was sought by Weyerhaeuser to assist us with our long-term plan of gradually consolidating some of Weyerhaeuser’s staff to the East Campus of Federal Way, closer to or even within the company’s corporate headquarters building,” says Bob Niendorf, a real estate specialist at Weyerhaeuser. “This gradual migration will occur over the next five years. The deal with the Hokansons seems to mutually accomplish the objectives of both parties, and we look forward to our business relationship with them over the term of our lease.”

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