The Department of Enterprise Services sold the Washington State Liquor Control Board’s old distribution center to Panattoni Development Co. for $23.4 million.
Panattoni plans to remodel and add space to the building at 4401 E. Marginal Way S.
Craft Architects will design the expansion, and Sierra Construction is the general contractor.
Kidder Mathews marketed the property for sale.
The price tag translates to roughly $104 per square foot for the 224,000-square-foot building, one of the highest prices for a distribution center in King County, according to real estate researcher CoStar Group, Inc.
Panattoni wants to start a 75,000-square-foot expansion next spring and be done by fall.
Panattoni is planning to buy a storage yard at 9600 Eighth Ave. S. and put two buildings there with 200,000 square feet.
Panattoni is based in Newport Beach, Calif., and is one of the most active industrial developers in the area. It has projects in South Seattle, Kent Valley and Pierce County.