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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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Gonzaga’s $48M science building gets OK for site on lake in Spokane

SPOKANE — Gonzaga University has gotten permission from the city to build a $48 million science and engineering building near the campus’ Arthur Lake, but the university is still raising the funds to pay for construction.

Brian McGinn, the city’s hearing examiner, approved the project, allowing the three-story building to be constructed within 200 feet of the lakeshore.

The project required his permission under the city’s shorelines law. A final determination regarding the shoreline rules will be made by the state Department of Ecology.

The 80,000-square-foot building, called the Integrated Science and Engineering Center, is part of a building boom on campus. The university recently constructed the $24 million Volkar Center for Athletic Achievement and the $13 million Della Strada Jesuit Community residential building. Work on the $30 million, 57,000-square-foot Myrtle Woldson Performing Arts Center is anticipated to be complete next year.

Gonzaga President Thayne McCulloh said the university hoped to raise half of the nearly $50 million needed for the new science center. The other half will come from the university’s cash reserves and restructuring debt.

“We are actively in the process of fundraising for the center,” he said. “We’re still working towards it.”

In November, the university said it surpassed its two-year fundraising goal by bringing in $286 million. McCulloh said the work to raise more money for construction and scholarships will continue through April or May.

The new science building will be an interdisciplinary space that brings together faculty from the university’s College of Arts and Sciences and the School of Engineering and Applied Sciences. A range of subjects will be taught, and ongoing student research projects will be on display.

McCulloh said the idea was to develop programs beyond the “bedrock” disciplines currently offered at Gonzaga. In addition to mechanical and electrical engineering, students would be able to study bioinfomatics and materials science.

“We’re seeing information that is critical to research in biosciences that really is derived from large, large amounts of data,” he said, referring to bioinfomatics, which collects and analyzes complex biological data such as genetic codes. “We are looking at ways in which a discipline like biology can interface with engineering to look at micro-technologies, especially in the health sciences.”

The building will have four types of learning spaces: general classrooms, project areas, teaching labs and research spaces, according to Portland’s SRG Partnership, which helped design the project.

It will have a central gathering space on the ground level. McCulloh called it a “hub of innovation” and a “dedicated space for the incubation of ideas.”

The science center isn’t directly linked with the growth in the nearby University District, but is related programmatically, McCulloh said.

Earlier this month, Eastern Washington University announced plans to move three degree programs and around 1,000 students from its Cheney campus to a building along East Sprague Avenue on the south side of the University District that it said allows for growth in its science and engineering departments.

“We obviously do what we’re doing in close relationship not only with Avista but with our colleagues at WSU and other institutions, developing things with an intention to be a partner with what is being developed and offered,” McCulloh said.

Gonzaga’s new building will connect to the existing Paccar building to the east and, via skywalk, to Hughes Hall to the north.

The land is zoned for high density residential. McGinn, the hearing examiner, said Gonzaga’s plans for the science center are “allowed outright,” and required no rezoning.

As part of the decision, Gonzaga will have to restore or enhance the shoreline, and update the Habitat Management Plan for Arthur Lake. McGinn noted that information Gonzaga provided as part of the State Environmental Policy Act showed that the “project will not have significant impacts on the environment or the surrounding properties.”

McGinn also noted that public access to the lake won’t be affected, since the paved trail on its southern front won’t be changed. The lake is wholly owned by the university.

Lake Arthur wasn’t always a lake. For many years, it was an inlet of the Spokane River used to store logs for the McGoldrick Lumber Co., which bought a mill on the site in 1906.

After a fire in 1945 destroyed the plant, Gonzaga purchased the land and closed off the inlet with a dam made of rocks, creating the lake.

By NICHOLAS DESHAIS
The Spokesman-Review

http://www.djc.com/news/co/12108574.html