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Safeway Completes $175M Distribution Center

AUBURN, WA-Designed to cover five states, the 1.15-million-sf complex here is the largest single construction project ever undertaken by the publicly traded food and drug retailer.

By Brian K. Miller | Updated on April 20, 2005

AUBURN, WA-Safeway this week launched operations at its newest distribution center, a 1.15-million-sf, 116-acre complex designed to service 300 Safeway stores in five states. The $175-million, 30-month endeavor is the largest single construction project ever undertaken by the Fortune 50 food and drug retailer. The property’s largest buildings are a 538,000-sf dry goods warehouse and a 515,000-sf refrigerated warehouse. Smaller buildings include a 31,000-sf recycling center and an 8,900-sf office building. Other components include a fuel station, a truck repair shop and parking for 800 cars, 448 trailers and 125 tractors.Safeway paid Boeing Co. about $29 million for the land–at the corner of Ellingson Road and C Street Southwest–and then spent another $145 million or so on the complex itself. It replaces a 1950s-era regional distribution center in Bellevue. Local brokers tell GlobeSt.com that Safeway plans to sell off two thirds of the Bellevue property.

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