The Wolff Co., a prominent real estate development group of companies with Spokane roots, has sold its 50-acre Central Business Park in Spokane Valley to Seattle-based real estate investment company Leavitt Capital Cos., says a principal involved in the transaction.
The principal, Tom Leavitt, CEO and founder of Leavitt Capital, says that company also has agreed to manage Wolff's remaining nonresidential properties in the Spokane area and throughout the West.
Leavitt Capital bought Central Business Park, a 500,000-square-foot complex formerly occupied by a SuperValu Inc. grocery distribution center at 11016 E. Montgomery, at the first of the year, and the transition in asset management of other properties has been evolving over the last six months.
The terms of the transaction weren't disclosed.
Wolff retains ownership of eight other Spokane-area commercial properties, with a total of 237,100 square feet of leasable space, but Leavitt Capital now is the asset manager and leasing brokerage, Leavitt says.
Those properties range from the 4,400-square-foot Common Grounds retail center, at 324 S. Sullivan, in Spokane Valley, to the 90,000-square-foot former Aslin-Finch distribution warehouse, now called the Aero Road Business Center, at 10424 W. Aero Road, on the West Plains.
Other Wolff-owned Spokane-area properties now being managed by Leavitt are:
Argonne Commercial Center, a 53,000-square-foot complex, at 9514 E. Montgomery, in Spokane Valley.
Central Sprague Business Center, a 38,000-square-foot complex at 5605 E. Sprague, in Spokane Valley.
A 19,100-square-foot, three-story office building at 1825 N. Hutchinson, in Spokane Valley.
A 15,800-square-foot, two-story office building at 220 W. Main, in downtown Spokane.
The 8,500-square-foot, former Marie Callender's restaurant building, at 2111 N. Argonne, in Spokane Valley.
A 7,700-square-foot retail and warehouse building, at 9511 N. Newport Highway, on Spokane's North Side.
Alvin J. Wolff founded Wolff here in 1948. The company had ownership interests in more than 2,000 apartment units in various stages of development here when it moved most of its corporate operations to Scottsdale, Ariz., 13 years ago. Since then, the company also has opened offices in Menlo Park, Calif., and near Boston.
Joe Organick, a Wolff executive here, says the company's primary focus is developing and managing multifamily properties, rather than commercial properties, and it's no longer looking to acquire or manage nonresidential properties.
In the Spokane area, Wolff currently is developing the $24.5 million, 216-unit River House apartment complex at 16621 E. Indiana Parkway, in Spokane Valley.
The company also recently developed the $25.7 million, 256-unit Pine Valley Ranch apartment complex at 3711 S. State Route 27, just south of Spokane Valley.
Leavitt says Wolff will maintain a presence here, including its Wolff Corporate Housing subsidiary, which is based at the Central Business Park.
Leavitt, who founded Leavitt Capital in 1979, says his relationship with Wolff spans more than a decade.
"I was introduced when they were looking to expand outside of Spokane," he says. "They were looking for someone to partner with who had been in the commercial real estate business."
Joint ventures in various projects blossomed into an extensive real estate portfolio across the Pacific Northwest and Arizona, Leavitt says.
The Central Business Park transaction, though, is Leavitt Capital's first acquisition here, he says.
"In addition to what we're doing in Spokane, our relationship has expanded to all commercial properties that The Wolff Co. owns, so the total relationship includes properties in Washington, Oregon, Idaho, and Arizona," he says.
Meantime, Wolff, a third-generation family-run company, will concentrate on developing and managing its growing holdings in multifamily properties throughout the country, Leavitt says.
"The Wolffs have become major players in the multifamily business across the country," Leavitt says. "As part oftheir commitment to the multifamily business, it made sense to transition commercial properties to us."
Earlier this year, New York-based PepsiCo consolidated its Eastern Washington and North Idaho operations at the Central Business Park. Other tenants in the park include SCS Refrigerated Services, AslinFinch Co., and American Ironworks & Erectors Inc.
The Central Business Park also includes 26 acres of undeveloped land for future expansion, Leavitt says.
Leavitt Capital plans to retain its roster of tenants and add to it, he says.
Leavitt Capital also has opened a regional office here, at 220 W. Main, which will be headed by Aaron Lake, the company's director of commercial real estate.
"As a reflection of our commitment to Spokane, we're not only opening a branch office, but were putting a key person there," Leavitt says.
Separately from its relationship with Wolff, Leavitt Capital owns and manages commercial properties in the greater Seattle market; the Portland-Hillsboro-Beaverton, Ore. market; and the Boise area.
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