TACOMA, Wash. -- Russell Investments, which has called Tacoma home since the company was founded in 1936, is moving to Seattle.

Employees at the downtown office said the announcement was made to staff Wednesday morning in an e-mail.

The company said it will be moving to the former WaMu Center at 1301 Second Avenue in 2010, and will rename the building Russell Investments Center.

Seattle Mayor Greg Nickels said the relocation would be good for Seattle.

"The CEO of Russell called me this morning and let me know they'd made that decision," he said. "I know they weighed it very, very carefully, and I know they have been a historic part of the City of Tacoma. So it wasn't an easy decision. We're very pleased that they're going to make Downtown Seattle their home."

Nickels said he knows the news will not be as well received in Russell's longtime home.

"When WaMu closed their doors last fall that was a tough day for Seattle, and we know how that feels," he said.

"We did not try to lure Russell company to Seattle, we simply said when they called us that they would be welcome in Seattle, as we would say to any company. And, to me, the important thing is that they will remain in the region."

Tacoma Mayor Bill Baarsma said he was disappointed but not shocked by the announcement.

"It was a business decision and that's the way it goes," he said.

Baarsma said he's confident the city will be able to fill the space and jobs left by Russell.

"We fashioned a customized product for Russell when they were locally owned, and we stand at the ready to do the same for new companies coming in," he said. "We have a tremendous tax incentive program."

Russell is the largest business in downtown Tacoma and has been is looking for a larger office.

Last year, Tacoma-area officials offered more than $140 million in public funds as part of a deal to keep Russell Investments from moving its headquarters and 900 employees.

Russell Investments is a subsidiary of Northwestern Mutual Life Insurance Company and has about $151 billion in managed assets, according to the company's Web site.