Originally published Saturday, February 10, 2007 at 12:00 AM
Developer to buy Associated Grocers' 55-acre hub in South Seattle
Associated Grocers said Friday it agreed to sell its 55-acre Seattle headquarters and food-distribution hub to Sabey Corp., known locally for redeveloping...
Seattle Times business reporter
Associated Grocers said Friday it agreed to sell its 55-acre Seattle headquarters and food-distribution hub to Sabey Corp., known locally for redeveloping old buildings.
The site, just south of Boeing Field between Interstate 5 and East Marginal Way South, is believed to be the largest piece of Seattle property to go on the market in recent years.
Associated Grocers (AG) said its board of directors voted unanimously to accept Sabey's offer pending finalization of the terms, which were not disclosed.
The 73-year-old company put the site up for sale in December, seeking to cash in on its price appreciation. Associated Grocers plans to lease the site back from Sabey while it looks for a new home, a process that could take up to four years.
Local real-estate experts said the site probably is selling for more than $85 million.
"It's got a lot of value to it, and Associated Grocers knew it," said Brian Dennehy, a broker at Grubb & Ellis.
Added Robert Aigner, a senior vice president at Harsch Investment Properties, which did not bid on the site: "The kinds of numbers I heard being kicked around were in the stratosphere."
Aigner said he could see the site eventually being redeveloped into a corporate campus for a large company.
Jason Rosauer, a broker at GVA Kidder Mathews who represented Associated Grocers in the sale, said the property had attracted "significant interest throughout the country and worldwide."
Tukwila-based Sabey recently redeveloped part of the old Providence Hospital on First Hill into a biotech research center. It also plans to redevelop the original Rainier Brewery site in Seattle's Georgetown neighborhood. Founder David Sabey originally made his mark putting up Boeing buildings in the South End.
The company isn't talking about its plans for the Associated Grocers site.
"They didn't buy it for any specific development plan," said Sabey spokesman Jim Kneeland. "It was just a great piece of property. You don't find 55-acre parcels with freeway access that close to downtown Seattle very often."
![]()
Associated Grocers supplies independent grocers and supermarket chains in Washington, Oregon, Alaska, Hawaii, Guam and the Pacific Rim.
Amy Martinez: 206-464-2923 or amartinez@seattletimes.com
Copyright © The Seattle Times Company
UPDATE - 11:31 PM
Flood fears dampen business, home sales
NEW - 12:51 AM
A Bing deal for Microsoft, News Corp.?
NEW - 11:02 PM
Amazon, Wal-Mart escalate Web price war
Disney's new movie chief recasting studio
Madoff liquidator wants $22M for 5 months' worth

PNW Magazine | Easy As Pie
A little friendly competition between professional pie-baker Kate McDermott and The Seatttle Times' Kathleen Triesch Saul is handled with great taste.
nwautos
Local riders say they've seen a surge in scooter interest in recent years, mostly from people wanting another commuting option. Seattle now ranks as o...
Post a comment
nwjobs
Post a comment
Michelle Goodman blogs about work/life balance.
Do you suffer from "sitting disease"?
Post a comment
- Illegal workers quietly let go
- Sprouts, raw fish on attorney's 'do not eat' list
- Jerry Brewer | Jerry Brewer: Seahawks can't lean on the Hutch Crutch now
- Woman stabbed by stranger in North Seattle
- Tattoos at Mill Creek church pierce skin, soul
- UW, WSU once again meet to see who's worse
- Food-safety lawyer's wish: Put me out of business
- Husky Football Blog | Ranking the Pac
- Vikings easily beat the Seahawks
- Tugboat sinks at Seattle waterfront pier
- Illegal workers quietly let go
406 - Climate change speeds up since 1997 Kyoto accord
215 - Metro won't cut bus service after all
160 - New Husky recruit: Enes Kanter
106 - Bellevue residents blast new bikini espresso stand
94 - Middleton says Huskies "plan on scoring at least 50 points'' Saturday
86 - Tattoos at Mill Creek Church pierce skin, soul
85 - Seattle woman charged with knife attack on boyfriend's ex
76 - Jerry Brewer: Seahawks can't lean on the Hutch Crutch now
75 - Senate Democrats split on health bill's fate
58
- Sprouts, raw fish on attorney's 'do not eat' list
- Tattoos at Mill Creek church pierce skin, soul
- Food-safety lawyer's wish: Put me out of business
- Illegal workers quietly let go
- Architects, chefs find 'kid' within to build Gingerbread Village
- Rediscovering Moab, 'the most beautiful place on Earth'
- It's possible to recover a life lost to hoarding
- Child-support error costs nearly $21,000
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Hutch gets $10M from Bezos family for immunotherapy research








