Eddie Bauer Inc., a division of ailing Spiegel Inc., reportedly entered into a deal to sell its Redmond, WA, headquarters to Microsoft Corp. for $38 million.
Bauer, which has been on the block since last fall, simultaneously entered into a three-year lease for the same property. Terms of that deal include payment of $3 million for the first year, $3.12 million in the second year and $3.2 million for the third.
Located across the street from Microsoft’s headquarters, the Bauer property includes 20 acres and three buildings with a combined 232,700 square feet.
The deal, which requires court approval, is part of the Chapter 11 bankruptcy reorganization that Spiegel, Downers Grove, IL, is undergoing. After two years, Bauer, or its new owner, can escape the lease at no cost.