The former Olympia Beer brewery property in Tumwater goes on the auction block this month.
Rather than buying the entire site as one package, potential owners can bid on four separate parcels.
Located on the south side of Custer Way along Capitol Boulevard, the brewery closed in 2003, four years after Miller Brewing took over. The vacant site has attracted potential buyers over the years, but no deal has ever come to fruition.
“We’ve decided the best route is to take it to the auction in several pieces,” said Mike Brennan of Mackinac Partners, which manages the property’s assets on behalf of an ownership group led by Capital Salvage. “There are a number of interested parties.”
Brennan is confident the properties will be sold at the auction, but below its market value. There is no minimum reserve price at the auction.
Although he wouldn’t reveal names, Brennan said the interested buyers come from the bottling and brewing industry.
“A lot of these guys are talking about doing stuff together,” Brennan said. “This will be sold.”
Bids will be accepted at 11 a.m. Oct. 28 at the Red Lion Hotel, 2300 Evergreen Park Drive SW, Olympia. Successful bidders will be asked to pay a 10 percent deposit with the remaining balance due by Dec. 18.
A brief description of the four properties up for auction:
▪ Property 1 measures 7.2 acres and is located at 100 Custer Way SW. This property along the east bank of the Deschutes River is valued at $1,750,150, according to the Thurston County Assessor. The property contains the main brewhouse facility, an office/bottlehouse building, and the M Cellar Building, along with 300 brewing tanks. It has been zoned for light industrial and historic commercial uses.
▪ Property 2 measures 22.2 acres and is located at 4090 Capitol Blvd. The property is valued at $2,978,600 and includes two industrial warehouses as well as several small outbuildings. It has been zoned for light industrial and historic commercial uses.
▪ Property 3 is one of two undeveloped lots at 4401 Cleveland Ave. SE. This lot measures just under 1 acre and is valued at $205,400, according to the Thurston County Assessor. It has been zoned for multifamily residential use.
▪ Property 4 is the southern half of two undeveloped lots on Cleveland Avenue. This lot measures 1.03 acres and is valued at $213,650. It has been zoned for multifamily residential use.
Troy Dana of Dana Commercial Real Estate has been trying to sell the property for years and is the main contact for bidders. Dana could not be reached for comment.
Meanwhile, the city has been preparing the brewery district for development. The district includes the historic brewhouse north of Custer Way, which is not part of the more modern brewery property being auctioned off.
Tumwater supports the auction but will not participate, said Heidi Behrends Cerniway, assistant city administrator and brewery project manager.
“The city has tried to help lay the groundwork for redevelopment, and we are very excited to work with a partner who can take that and move it forward,” Cerniway said. “This is an opportunity for a new person to come in and support the community’s vision.”
The brewery district is bordered roughly by Tumwater Historical Park to the north, the Tumwater Valley Golf Course to the south, the cemeteries on Cleveland Avenue to the east, and Interstate 5 to the west. The city is pursuing a “town center” vision for the district as an economic hub that includes housing, shops, parks, trails and pedestrian-friendly development.
As for developing the historic brewery site north of Custer Way, the city has proposed the Tumwater Craft Brewing and Distillery Center. The concept has the potential to generate as many as 662 jobs and more than $101 million for the local economy. Part of that plan would include restoring the 110-year-old Tumwater brewhouse from further deterioration.