Investor buys historic Peyton Building for $11.4 million

A real estate investor has purchased the historic Peyton Building in downtown Spokane.

Scott Isaak, owner of Chelan-based 5D Holdings LLC, acquired the seven-story building at 10 N. Post St. earlier this month for $11.4 million, Spokane County Assessor’s Office records show.

The Peyton Building, constructed in 1898, is one of the oldest commercial structures in downtown Spokane. The building is listed on the Spokane Register of Historic Places and the National Register of Historic Places.

Isaak is a franchisee of Sweeto Burrito restaurants in Spokane and Coeur d’Alene. He also owns Parkview West Apartments, Lolo Lofts and the Roxy building in downtown Spokane.

“We love downtown Spokane and we are kind of developing a history of that from Parkview West to Lolo Lofts, the Roxy and now this,” Isaak said, referring to the Peyton Building. “I was very impressed with the shape of the building. Our job is to continue to make life great for the tenants.”

Prior to its recent sale, Peyton Building LLC owned the property for more than 17 years. Peyton Building LLC’s principals are Bellingham-based developer Robert Hall and David Johnston, owner of Clearstory Investments.

Johnston and Hall invested more than $2 million in improvements to the building, including an upgraded common area, new boilers and bathrooms on all floors, LED lighting as well as many tenant alterations, Johnston said in an email.

“We feel lucky to have owned the Peyton Building, and we worked hard to improve it and create a healthy, vibrant environment where the tenants can thrive,” Johnston said. “Kiemle Hagood managed the building, guided the many improvements and leased the spaces. Kiemle Hagood is a phenomenal company to work with and they are main reason for the building’s health and stability.”

The Peyton Building was constructed from remaining exterior walls of the Great Eastern Building, which was destroyed by a fire in January 1898. After Colonel Isaac Newton Peyton – the building’s namesake – purchased the Great Eastern property, he hired architectural firm Cutter & Malmgren to design new interior for the building and rebuild its exterior, according to a historic nomination document for the Spokane Register of Historic Places.

Peyton expanded the building in 1908 by constructing the seven-story Peyton Annex on the south end of the structure. At the time, the Annex and the Holley-Mason Building were the only two reinforced concrete buildings in Spokane.

The Peyton Building & Annex underwent many interior alterations and housed several businesses in its more than 120-year history. Some of the building’s current tenants include Cochinito Taqueria, Volstead Act and Cougar Crest Estate Winery. Rep. Cathy McMorris Rodgers also has an office in the building.