'Seattle Times' Sells Property, Citing Battle With Hearst

By: Jennifer Saba The Seattle Times has sold its property adjacent to its Fairview headquarters to City Investors XVII for $31 million, E&P has learned. The property, which totals roughly six acres and is used mainly as an employee parking lot, represents half of the Times' real estate holdings, said Kerry Coughlin, spokesperson for the Times.

The move is a strategic one for the Times (Click for QuikCap), owned by the Blethen Family, in its ongoing fight to wrest itself free of the joint operating agreement (JOA) with the Hearst-owned Seattle Post-Ingelligencer. "The sale is not driven by anything other than to defend ourselves against Hearst's efforts to bleed us through litigation," Coughlin said. The Times is trying to break off its JOA with Hearst; Hearst in turn, sued the Times.

A spokesperson for the P-I had no comment today about the land sale, but Hearst Corp. in New York had plenty to say. Paul Luthringer, a spokesperson for Hearst, disputed the claims by the Times. "Frank Blethen has repeatedly complained about being 'trapped' in a money-losing JOA," Luthringer said, via e-mail. "The Times receives 50% more revenue than the P-I from the JOA to cover its news and editorial expenses, and is compensated for the JOA use of its property and equipment."

In a letter to readers posted today (and twice last week), the Blethens said the sale was necessary to "make sure Hearst will not end independent journalism in Seattle." The proceeds from the sale will prevent cuts at the Times, especially in "news staff and content," the letter said.

The Times has been investing in real estate for the past couple of decades as a way to provide an alternative source of revenue. "We were reluctant to let it go," Coughlin said.

A few buildings are part of the package that was sold to City Investors, a wholly owned subsidiary of Vulcan Inc., one of which currently houses the Times new media department. The department will moved at some point, Coughlin said.

Employees will still have access to parking, though they will most likely have to pay market rate. The Times subsidized employee parking when it owned the property. It is expected that City Investors will eventually develop the land in an area that is becoming known as a bio-tech center. A spokesperson for Vulcan Inc. said there are no immediate plans for the property. Microsoft co-founder Paul Allen is the founder and chairman of Vulcan.

Several years ago, Frank Blethen threatened to move out of Seattle, claiming the city was not treating the paper well. Coughlin said that the paper has no current plans to move its headquarters.