New York entity snaps up REI distribution center in Sumner for more than $101 million
Recreational Equipment Inc. has let go of its long-owned distribution center in Sumner.
In a sale recorded Feb. 20 by Pierce County, REI sold the property, 1700 45th St. E., to an LLC affiliated with Madison Capital of New York.
The sale price was $101.3 million. Madison Capital’s portfolio includes commercial properties in New York, California and Illinois.
The site has an assessed value of $68.2 million, according to Pierce County Assessor-Treasurer online property portal.
The real estate investment and development firm on its website says it works to “acquire and reimagine office, retail, industrial, flex-industrial, laboratory and R&D assets to enrich spaces and create value.”
REI opened the Sumner distribution center in January 1992 and announced an expansion in 2004, adding approximately 146,000 square feet of floor space to the existing 375,000-square-foot facility.
In recent years, the company has hit rough economic waters with operating losses and has been active with staff restructuring and executive turnover.
In 2024, the company laid off 200 at its Sumner headquarters. It made further cuts at the start of 2025 by abandoning its Experiences business, which involved adventure travel, day trips, outdoor education and more. That move eliminated more than 400 full- and part-time staff.
Also in January, the co-op announced its president and CEO Eric Artz would retire in March. Mary Beth Laughton, a former REI board director, moved into the role of president earlier this month and will take on CEO responsibilities at the end of March.
In a statement about the property sale in Sumner, REI co-op communications told The News Tribune on Friday that “REI will continue to maintain and operate all the buildings with no impact to employees.”
The company has various warehouse jobs posted online.
The last publicly available figures on major employers from the Tacoma-Pierce County Economic Development Board listed the site among the county’s top 50 employers with nearly 500 workers, though that was before staff reductions in recent years.
The co-op has more than 180 stores in 42 states and the District of Columbia. It also sells products online and via catalogs.
The Puget Sound Business Journal first reported the Sumner site sale on Thursday.
Story has been updated with comment from REI.
This story was originally published February 21, 2025 at 10:07 AM.
