Development Company To Be Sold

Cornerstone Columbia Development Co. was put up for sale yesterday by parent companies Weyerhaeuser Real Estate Co. and Portland General Electric Corp.

Based in Seattle, the development company has developed a number of large multi-use and urban redevelopment projects in Seattle, Tacoma and Portland.

Weyerhaeuser and Portland General each own 50 percent of Cornerstone.

Incorporated in 1979, Cornerstone manages 1.3 million square feet of space. Projects include Waterfront Place, a seven-block redevelopment of Seattle's central waterfront district; the RiverPlace community on the Willamette River in Portland; and Tacoma Center, a multi-block mixture of office and commercial space in Tacoma.

Through its subsidiary, Cornerstone Hospitality Management, Cornerstone Columbia Development Co. operates Alexis hotels in Seattle and Portland, the Inn at the Market in Seattle, and the Tacoma Sheraton in Tacoma.

Cornerstone president William Weisfield declined to reveal an asking price. He said a final sales package will be ready in about 30 days.

``What we need is a well capitalized sponsor with a long-term commitment to real estate,'' Weisfield said. He said Cornerstone's holdings will probably be most attractive to a large company from Europe, Canada or Asia.

The announcement confirms the direction set by Portland General on Feb. 7 when it announced its intention to leave the real estate market and concentrate on the energy business, President Richard Reiten said.

Weyerhaeuser owns three other real estate subsidies. Weisfield said it was a logical step for the timber giant to concentrate its efforts with them. Stephen Lewis, Weyerhaeuser Real Estate Co. president, said Cornerstone duplicates a number of those activities.

Weisfield said the sale will not affect any current Cornerstone projects. Last month, Cornerstone purchased Everett's Seaway Center and announced its intention to invest more than $100 million annually in it and other suburban office and industrial developments. Seaway Center is a 301-acre master-planned business park north of Paine Field.