A Depression-era building in downtown Yakima will soon have new owners.

A group of local and Seattle investors will finalize their purchase of the Liberty Building at 32 N. Third St. for $1 million.

The investors, including a real estate developer, a real estate attorney and a commercial banker, did not want to be identified yet, said Bill Almon Jr. of Almon Commercial Real Estate, who represents the buyers.

“They saw an underperforming asset they could add some value (to) and turn around,” Almon said. “With their backgrounds, it’s a pretty natural fit.”

Toth Investments purchased the building in May 2006 from the Yakima Valley Memorial Hospital Association for $625,000, after the YWCA dropped its bid for the four-story, 40,000-square-foot structure.

Owner Terry Toth had grandiose plans for the building that included upgrades to the heating and air conditioning system, placing a new restaurant on the ground floor and even securing Lady Liberty, a terra-cotta replica of the Statue of Liberty that once was at the corner of the building.

more But none of those plans was fully realized during the time Toth Investments owned the building.

And now that Toth is working on a gated community on 37 acres he owns in Selah, he felt he couldn’t give his full attention to the downtown building.

“We could not effectively do both projects,” he said. “We would’ve been spread too thin.”

The incoming owners have their own plans for the property. The main focus is making several improvements to the building that include upgrading the building’s heating and air conditioning system and remodeling the lobby area.

The new owners have not established a timeline for these improvements, Almon said. Existing tenants, which include For A Better Tomorrow, a community organization, and Red Gallery and Studios, an art gallery, will be minimally affected by the renovations. The work is planned for the evening and weekend hours.

Once the renovations are completed, Almon Commercial will be handling the leasing and maintenance of the site for retail and office uses. The investors have no plans to convert any part of the building for residential units.

“Space is certainly available, but we want to have something to show prospects of what they will be leasing,” Almon said. “It’s a good building, it just needs to be improved and modernized a bit.”

And downtown organizers are happy with that.

“With the (Liberty Building’s) remodel, and priced appropriately, it should be filled,” said Sean Hawkins, deputy executive director of the Committee for Downtown Yakima.

The pending sale is the latest in a busy year of real estate activity that has included the sale of the nearby Larson Building and construction of condominiums at the former Bon Marche store across the street from the Liberty Building.

* Mai Hoang can be reached at 577-7685 or mhoang@yakimaherald.com.