Fred Meyer Will Build Store In Newly-Bought Renton Mall

RENTON

Fred Meyer Corp. has purchased the Renton Shopping Center and plans to build a store there, adding to the chain's growing presence in South King County.

The Portland-based retailer exercised an option it took on the mall from former owner Northwest Building Corp. A price was not disclosed, but title records show Fred Meyer paid $13.5 million.

"We haven't finalized plans yet on developing the mall," says Rob Boley, a Fred Meyer spokesman. "We don't know when a Fred Meyer would appear, but we are going to improve the site."

A full-size Fred Meyer will be built somewhere on the mall property. At 165,000 square feet in floor size, it will be one of the company's largest stores, says Boley. Fred Meyer sells a broad selection of merchandise including food, clothing and home- improvement goods.

Existing Fred Meyers in the region are in Auburn, Burien, Federal Way, Kent, Midway, Benson Plaza in Renton and White Center. The publicly-traded company also is considering sites for a store in Covington, but would not build the store for several years, Boley says.

The Boeing Co.'s announced layoffs will not curb Fred Meyer's expansion plans in the Seattle region, Boley says.

"We sell the basics," he says. "When the economy goes into downward trends, we often do well because of our reputation for value."

Fred Meyer bought the 300,000-square-foot Renton Center because of its location, on a 28-acre parcel off Rainier Avenue South, just north of the I-405 interchange.

"It's an outstanding location for development," Boley says. "It has tremendous access from several locations."

Fred Meyer also plans to upgrade the mall. Built in 1960, Renton Center has suffered from flat retail sales and an outdated image. The breezeway mall is anchored by Sears and J.C. Penney and has several smaller stores in the main section, as well as in several outlying buildings.

Northwest Building bought the mall in 1983. Two years ago, it announced plans to give Renton Center its first major facelift since its opening.

Albertson's Inc. also considered building a supermarket on the site.

Northwest Building did not renew leases with several small retailers located in a separate strip mall on the site and began demolishing the building. The Seattle-based company planned to replace the building with a new one, costing $500,000, and sign up new tenants.

But all its refurbishing plans were put on hold as it negotiated a sale price with Fred Meyer. Northwest Building did not give a reason for selling the mall and company officials were not available for comment yesterday.

How the purchase will affect Sears' status at the mall is not known at this time. Northwest Building was negotiating with Sears to renew its lease, which expires Jan. 1, 1995. Sears was to decide last month if it would keep its store here, but no decision was reached. Sears officials could not be reaced yesterday.

This is not the first time Northwest Building has dropped plans to renovate one of its properties. The development company, owned by former Weyerhaeuser Co. President Norton Clapp, bought the Aurora Village Mall in North Seattle, in 1987.

Northwest Building told Aurora Village tenants it would upgrade the mall, but it sold the building instead to Pan Pacific, in 1989.

Fred Meyer has 123 stores in seven western states.