Sabey Corp.

Specialty: Development and real estate investment

Management: David Sabey, president

Founded: Mid-1970s

Headquarters: Tukwila

Current projects: Redevelopment of the former Rainier Ice & Cold Storage in Georgetown; construction of a data center site called Intergate.Columbia near East Wenatchee

Image courtesy of Sabey Corp.
Sabey is redeveloping the old Rainier Ice & Cold Storage complex into housing and retail.

“Our specialty is to be diverse,” says David Sabey, president of Sabey Corp. He’s not kidding.

His company develops niche capital-intensive real estate, such as health-care facilities and data center space, as opposed to standard warehouse and office buildings, he says. It also invests in everything from the Seattle CyberKnife, which treats clearly delineated tumors with direct and magnified radiation, and Sahale Snacks, nut and granola cluster snacks, according to the company’s Web site.

Data centers

Sabey Corp. plans to start construction in spring of a data center site to be called Intergate.Columbia in Douglas County near East Wenatchee. The 30-acre site will accommodate three data center buildings — one 100,000 square feet and two 188,000 square feet — plus a substation. It can house one tenant or multiple users.

In a typical real estate deal, location is a big factor. In the data center realm it’s just a necessary evil, said Sabey. Data centers that drive the Internet can be anywhere in the world, he says, but it’s power and the convergence of power that makes these projects successful. The Douglas County site is most attractive for its proximity to two dams on the Columbia River that supply abundant and inexpensive power, according to Sabey Corp.

The company also owns Intergate.Seattle in Tukwila. It is designed to accommodate commercial office space and data centers. Most of the data center space is at the eastern portion of the development called Intergate.East.

New life for old brewery

Sabey Corp. recently purchased the former Rainier Ice & Cold Storage site, which was at one time home to Rainier Brewery. It plans over the next five or six years to renovate and redevelop the historic 5.5-acre development built in 1903, adding housing and retail. The working title for the redevelopment on Airport Way South in Georgetown is the Georgetown Brew House.

The property has four buildings — the brew house, malt house, bottling plant and an office building — with a total of 310,000 square feet. The plan is to put about 30,000 to 40,000 square feet of retail into some of the existing space. Housing will be added, but probably fewer than 20 units.

Sabey Corp. has redeveloped a number of older buildings. It converted a former chicken processing plant to create Elliott Park North for biotech tenants and turned Starbucks’ original roasting plant into Park 90/5.

A hot market

Sabey said the local real estate market is “as good as its ever been,” propelled in part by Boeing and Microsoft.

“I don’t think in my 40 years it’s ever been this hot (and it) looks good going forward for some time.” Equity capital is abundant, job growth is strong and lots of cargo is going through the ports, he says.

“This is a pretty exciting time for our little neck of the world,” he says.

The biggest concerns are a regulatory environment not conducive to fostering development and rising taxes that in the long-term could “snub out the excitement of being in the Pacific Northwest,” he says. The road network is also an issue.

“Just go to the Eastside anytime of the day and try to drive around on 405. It’s just a disaster,” he says.

Copyright ©2005 Seattle Daily Journal and DJC.COM.
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