The seller was Innovel Solutions Inc., the logistics arm of Sears, which had owned the property for decades.
The buyer was CenterPoint Properties Trust, which issued a press release with transaction details.
Thad Mallory of Kidder Mathews represented both sides in the off-market transaction.
The deal was worth about $166 per square foot. CenterPoint said it had a new tenant lined up, described as “a diversified logistics solutions provider.”
Developed on a little over 14 acres in 1981, the building has 294,912 square feet, according to CenterPoint. The property is just west of Highway 167, and north of Highway 516.
CenterPoint’s Ryan Dunlap said in a statement, “We are excited to continue our momentum in the greater Seattle area and bring this property into our active West Coast portfolio.”
The company’s Greg Pearson added, “Situated on the 50-yard line of the Kent Valley, the asset will compete with any new construction.”
CenterPoint has been adding to its local logistics portfolio. Last month it paid $73 million for an almost 12-acre industrial property in the Duwamish area, with 342,869 square feet, all currently leased.
Nationally, CenterPoint has almost 59 million square feet and 2,386 acres under development. Locally, it owns properties in Kent, and on East and West Marginal ways. In June, it also paid $16.7 million for 14 acres on Hylebos Waterway near the Port of Tacoma, which it eventually plans to redevelop.
Meanwhile, Sears continues to close stores and liquidate real estate. Earlier this year it put the Southcenter mall store on the market, along with a portfolio with a half-dozen properties. Last year it sold stores in Shoreline and Federal Way to Merlone Geier Partners for $26 million.
Renovation plans for Tacoma Mall indicate that store will close, too, after its lease expires.
In 2012, Sears had a store count of about 4,000 locations. That is expected to shrink to 800 by year’s end.
However, in Redmond a Sears-related REIT, Seritage Growth Properties, will redevelop 15 acres it owns at Overlake Fashion Plaza with offices, about 500 units of housing, a hotel and new retail. Heritage Place, as the mixed-use development is called, will be about a 15-minute walk from Overlake Village Station, which is scheduled to open in 2023. Seritage is also redeveloping some of its well located properties – as in Santa Monica, California.
Many analysts and industry observers have questioned whether the once-mighty chain, now owned by investors led by Edward Lampert, can survive. Sears also owns Kmart and has been closing those stores, too.
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