TACOMA, Wash. -- Russell Investments is moving its headquarters from Tacoma to downtown Seattle, the company told employees by e-mail Wednesday morning.

According to a press release, the company will move into 1301 Second Ave., currently known as the Chase Tower and originally known as the WaMu Center.

When the company occupies the building in 2010, it will become the Russell Investments Center.

“After a thorough search and analysis of multiple sites in the Puget Sound region, we came to the clear conclusion that this is the right decision to best serve the long-term interests of our business,” said Russell Investments President and Chief Executive Officer Andrew Doman.

Tacoma's Mayor Bill Baarsma said he is disappointed in Russell’s decision, but is not surprised. He said he’s glad a decision has been made and that the city can move forward.

Russell Investments announced in December that it might relocate its headquarters to accommodate the 900 employees who work there.

Tacoma had offered incentives worth more than $148 million to keep the company as the downtown anchor, but Russell Investments noted that the decision was driven in part by the current economics of the Seattle real estate market.

“We recognize that this news will be disappointing to some. We weighed all considerations carefully, and in the final analysis our decision was based on what would best serve Russell over the long-term,” Doman said.

The Associated Press said Seattle offered a business tax break, but Mayor Greg Nickels confirmed the move but said no incentive was offered.

Baarsma said Tacoma will focus on other businesses in the city that bring 40,000 workers downtown every day.

City officials said kidney dialysis company, Davita, is keeps its headquarters in downtown Tacoma and expanding. Columbia Bank, Rainier Pacific and other health care companies are also in Tacoma.

"We feel very optimistic about the momentum we've accomplished," said David Graybill of the Tacoma-Pierce County Chamber.

Russell started in 1936 and grew into a global leader in managing pension funds. It's now owned by Milwaukee's Northwestern Mutual Life and has $151 billion in assets under management.