Zoned for multiple uses, the property was one of the largest commercial property offerings within Seattle city limits in decades. GVA Kidder Mathews was hired in December 2006 to market the property located at the south end of Boeing Field between I-5 and East Marginal Way.
At that time, one local investment broker told GlobeSt.com that the sale price would be "a healthy nine-figure number," which was to say well over $100 million. Tukwila, WA-based Sabey Corp. officially entered exclusive negotiations with AG in mid-February.
Jason Rosauer and Dave Speers of GVA Kidder Mathews had the disposition assignment for AG. Rosauer tells GlobeSt.com that there were a number of factors taken into consideration, including the leaseback, surety of a quick close and long-term relationships. "If it was just strictly about price, the nine-figure number may or may not have been achievable," he says. "Ultimately, it became more than just a number."
Associated Grocers, which serves independent grocers and supermarket chains throughout the Northwest, Alaska and Pacific Islands, has run its Puget Sound wholesale food distribution operations at this location since 1952. Tucked between Interstate 5 and East Marginal Way, the property contains 975,000 sf of warehouse-distribution buildings and 75,000 sf of office space.
In explaining the decision to sell, AG officials said in February that the property's value has appreciated to the point that it was time to look at relocating to more cost-effective facilities. The leaseback now gives them time to find that new location.
Sabey hasn't yet said what its plans are for the property. The company recently converted part of the old Providence Hospital on First Hill into a biotech research center and also has plans to redevelop the one-time Rainier Brewery site in Seattle's Georgetown neighborhood.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
