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Safeway sells 105 acres in Auburn for $144.5M

A Safeway distribution center at 2921 C St. S.W. in Auburn has sold for a little over $144.5 million, according to King County records.

The seller was Safeway, which acquired the property in 2002 for $29 million.

The buyer was RAR2 3520 Pacific Ave LLC, which is associated with Deutsche Asset & Wealth Management (formerly known as RREEF America REIT II) of Chicago and San Francisco.

Brokers were not announced.

The 105-acre center, apparently developed in 2004, has about half a million square feet in nine buildings. Part of the property is wetlands that can’t be developed, but not all details could be confirmed before deadline.

King County records also put the property in Algona. It’s a little east of Highway 167, and north of the White River.

Nationally, Safeway and parent company Albertsons have continued to sell off stores. Some are being redeveloped with new stores and apartments on top; some are simply being leased back.

Large distribution centers are potentially much more valuable. For example, Prologis paid Sabey $136 million in 2016 for the Associated Grocers site near Boeing Field, which is being redeveloped as Emerald Gateway and will serve a very different class of logistics customers.

Deutsche Asset/RREEF has bought and sold various properties in the Northwest. Two years ago it sold the Gateway Corporate Center in Tukwila to BECU for $78 million. The firm is also known as DWS.

By BRIAN MILLER

https://www.djc.com/news/re/12117537.html
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