Tully's Set To Move Headquarters, Roasting Plant Into Rainier Brewery

It'll still be brewing, but this time it's a different kind of drink.

Tully's Coffee, one of Seattle's most prominent specialty coffee retailers, will start moving into the landmark Rainier Brewery at the end of next month.

Tully's, now based in the former Starbucks headquarters at 2010 Airport Way S., will move its headquarters and roasting plant to the new site.

"The company is very excited about the move to the Rainier Brewery," said Tom O'Keefe, Tully's chairman and chief executive officer. "It is crucial for the company's identity that the headquarters remain integrated with Seattle."

Rainier, which first opened in the 1930s at its location along Interstate 5 north of Spokane Street, was owned and operated by Detroit-based Stroh Brewing.

But the plant went on the market earlier this year after Stroh sold all of its beer brands to Miller Brewing and Pabst Brewing in February.

The brewery, which had been for sale at an asking price of $19.7 million, was purchased by Seattle businessman Larry Benaroya.

Tully's, which had been looking for a larger facility, will lease more than 200,000 square feet of the east side of the building - about four times as big as its current headquarters.

The west side of the brewery, a 250,000-square-foot space, will be leased to another tenant.

Space at the brewery will accommodate Tully's administrative offices, a new roasting plant and storage facilities.

Tully's is planning about $1 million in renovations to the building, including new interior paint, carpeting and new roasting and packaging equipment.

As was the tradition at the brewery, Tully's will offer daily tours, allowing visitors a chance to see the new roasting plant and headquarters and sample free coffee in the historic Mountain Room.

The retailer's current headquarters will be converted into a coffee museum.

"It is an appropriate use for the building given both Tully's Coffee and Starbucks started their operations and roasting there," O'Keefe said.

Tully's, which was founded in 1992, operates roughly 90 stores, mostly in Seattle and San Francisco, with a few in Asia. Its annual sales are about $22 million.