The 430-acre Weyerhaeuser property in Federal Way has sold.
Industrial Realty Group, LLC, closed on the deal, which was $70.5 million, on Tuesday, according to city of Federal Way spokesman Steve McNey.
John Mase, the CEO of Industrial Realty Group, said his company’s experience in redeveloping corporate campuses and leasing is “extensive.”
“We understand the importance this site has in Federal Way and the region,” Mase said in a news release. “The architecture and surrounding land is impressive and will be highly-desirable for future tenants. We are also excited about forging ahead with the city in preparation for the property’s next chapter.”
Weyerhaeuser officials announced in August 2014 that they would move their Federal Way-based headquarters to Seattle in mid-to-late 2016, citing the too-large 430-acre campus and lack of enough talent in Federal Way as the main reasons for that decision. Officials have since confirmed they will make the move to 200 Occidental Ave. in Seattle this summer.
Until then, Industrial Realty Group will lease the five-story building to Weyerhaeuser. After its move, the company will maintain a presence in the Technology Center under a lease with Industrial Realty Group.
Industrial Realty Group owns more than 120 properties in 28 states with more than 100 million square feet of space. The company is currently the master developer for the National Football League’s Hall of Fame Village, which includes the renovation of the Pro Football Hall of Fame Field.
According to a news release, the company plans to “accommodate tenants who would be a positive mix for the region” and “understands the value the property has” and is “a fixture in the local community.”
Since the announcement in 2014 that Weyerhaeuser was leaving the city, Federal Way officials have worked with Heartland, LLC, the real estate firm that worked with Weyerhaeuser on the sale, to help find tenants that will promote local job growth.
Mayor Jim Ferrell said the property’s location, along with the city’s support for business and quality life, will enable the community to be “well-positioned for the future.”
“This is a major redevelopment for this property,” Ferrell said, adding that he was impressed with the communication, professionalism and collaboration of Weyerhaeuser during their search for a buyer. “They brought us into the process…”
Ferrell said he and city staff met with Industrial Realty Group representatives several weeks ago and assisted with the background work that needed to be done.
“We’re really excited about this,” he said. “It says a lot about their interest in our area and this property and the investment in jobs.”
City officials will continue working with Industrial Realty Group to help them during the ownership transition, Ferrell added.
Weyerhaeuser, one of the largest private owners of timberlands, came to Federal Way in 1971. The building featured one of the first green rooftop terraces in the northwest and one of the first open landscape office designs in the United States.
Doyle R. Simons, president and CEO of Weyerhaeuser, acknowledged the company’s “long, successful history” in Federal Way and said the campus has served them well.
“We’re pleased to be transitioning ownership of the campus to IRG, which specializes in managing complex real estate sites,” Simons said in a news release. “[It] will be a great fit for the city of Federal Way.”
The Pacific Bonsai Museum, which has been on the campus for more than 26 years, released a statement saying they intend to remain on the campus and will work to establish a partnership with Industrial Realty Group. However, they also stated that “during this transition, [they] will be exploring opportunities as well as stewarding [their] renowned collection with great care.”
The Mirror will update this report as more information becomes available.
