Zoned for multiple uses, the property was one of the largestcommercial property offerings within Seattle city limits indecades. GVA Kidder Mathews was hired in December 2006 to marketthe property located at the south end of Boeing Field between I-5and East Marginal Way.

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At that time, one local investment broker told GlobeSt.com thatthe sale price would be "a healthy nine-figure number," which wasto say well over $100 million. Tukwila, WA-based Sabey Corp.officially entered exclusive negotiations with AG inmid-February.

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Jason Rosauer and Dave Speers of GVA Kidder Mathews had thedisposition assignment for AG. Rosauer tells GlobeSt.com that therewere a number of factors taken into consideration, including theleaseback, surety of a quick close and long-term relationships. "Ifit was just strictly about price, the nine-figure number may or maynot have been achievable," he says. "Ultimately, it became morethan just a number."

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Associated Grocers, which serves independent grocers andsupermarket chains throughout the Northwest, Alaska and PacificIslands, has run its Puget Sound wholesale food distributionoperations at this location since 1952. Tucked between Interstate 5and East Marginal Way, the property contains 975,000 sf ofwarehouse-distribution buildings and 75,000 sf of office space.

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In explaining the decision to sell, AG officials said inFebruary that the property's value has appreciated to the pointthat it was time to look at relocating to more cost-effectivefacilities. The leaseback now gives them time to find that newlocation.

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Sabey hasn't yet said what its plans are for the property. Thecompany recently converted part of the old Providence Hospital onFirst Hill into a biotech research center and also has plans toredevelop a former Rainier Brewery complex on Airport Way South inSeattle's Georgetown neighborhood.

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