**Madison Capital Acquires REI Sumner Distribution Facility for $101.3 Million**
Recreational Equipment Inc. (REI) has sold its long-held distribution center in Sumner, Washington, to an LLC affiliated with Madison Capital of New York. The property, located at 1700 45th St. E, was sold for $101.3 million as part of a larger $230 million sale-leaseback agreement involving four distribution centers.
Madison Capital’s acquisition includes properties in Washington, Pennsylvania, Arizona, and Tennessee. REI was represented in the transaction by Heartland, LLC, in partnership with local brokerage firms BRK Real Estate Advisors, JLL, and Foundry Commercial.
“Based on the success of long-term leases with our current headquarters and the majority of our stores, we determined a sale-leaseback model was a great option as part of our overall financial and real estate portfolio management,” said Kelley Hall, REI’s chief financial officer.
The Sumner distribution center, originally opened by REI in 1992, underwent an expansion in 2004 that added 146,000 square feet to the existing 375,000-square-foot facility.
