Recreational Equipment Inc. has sold its long-owned distribution center in Sumner, Washington, to an LLC affiliated with Madison Capital of New York. The property at 1700 45th St. E. sold for $101.3 million. The transaction is part of a $230 million, four-property sale lease-back agreement.

Madison Capital paid $230 million to REI for the buildings and land associated with four distribution centers, including the Sumner location and three other centers in Pennsylvania, Arizona and Tennessee. REI was represented by Heartland, LLC, in cooperation with local brokers 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 chief financial officer.

The outdoor adventure and apparel brand first opened the Sumner distribution center in 1992 and added 146,000 square feet of floor space to the existing 375,000-square-foot facility in 2004.

Register Today to “Be in the Room” when Michael Brennan receives Connect CRE’s Lifetime Achievement Award and will participate in the Keynote Interview with Kevin Brennan, also of Brennan Investment Group. Join us at Connect Industrial Midwest 2025 on the afternoon of Wednesday, March 5, at Joe’s Live in Rosemont, IL, for this exclusive presentation!