State Farm sells DuPont building in a lease-back agreement

Staff writerNovember 9, 2013 

DuPont, State Farm Insurance. February 14, 2013. Peter Haley / Staff photographer

PETER HALEY — THE NEWS TRIBUNE Buy Photo

State Farm spokesman Brad Hilliard on Friday confirmed the contents of an interoffice memo to employees saying the company had sold its DuPont office building and then arrange to lease the property back from its new owner.

Along with the DuPont deal, the memo listed several other properties throughout the country where lease-back arrangements have been sealed.

“The buildings have been sold as a package to a single buyer and we have immediately leased them back for a period of time, with options to renew these leases if we choose to do so,” wrote Mary Crego, State Farm senior vice president. “All of these operations centers will be maintained by State Farm employees as they are today.”

The sale and lease in DuPont will have no effect on employees or customers. The company employs some 1,000 people in DuPont – in southern Pierce County near the Thurston County line – where it built its current site in the 1990s.

“Our operations are not changing in DuPont of Tacoma,” Hilliard said. “Our DuPont operation will be maintained by State Farm employees as it is today.”

According to the memo, the DuPont deal calls for a five-year lease with two five-year renewal options. Similar transactions will be in force at State Farm offices in California, New York, Pennsylvania, Maryland, Colorado, Indiana, Michigan, Ohio and Florida.

A seven-year lease with options was signed for a center in Colorado, while 11 other properties have seen 15-year leases with options.

According to an earlier memo, moving from owned space to leased space is part of a larger reorganization that began last year.

Earlier this year, Tacoma benefited from the reorganization as State Farm announced it would lease offices downtown.

Hilliard said Thursday that “employees are training” at State Farm offices in the former Russell Investments building on A Street.

“The evaluation to determine future Claims, Underwriting and other functional locations continues. We will continue to communicate our decisions as soon as we are in the position to share details,” said Thursday’s memo from Crego.

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