Similar to many strategically located markets throughout the United States, the Puget Sound’s industrial market continues to expand at an accelerated pace. Trophy-quality industrial assets in these markets are among the most desirable investments for the capital markets, and the values they attract reflect that demand. Today, two Class A industrial properties traded in a confirmation of both this environment and the ongoing confidence the investment community has in the regional market’s current and future strength. North Auburn Logistics in Auburn and The Reserve @ Woodinville in Woodinville sold for an aggregate $87.6 million. Black Creek Group acquired the properties from a partnership of Panattoni Development Company, Inc. and LaSalle Investment Management, Inc.
“We are thrilled to be adding these two, new Class A buildings to our holdings as they are an excellent fit for us as we continue to focus on expanding our presence in high-barrier-to-entry markets with strong fundamentals such as the Puget Sound area”, said Gregg Boehm, senior vice president of acquisitions and development for Black Creek Group.
Colliers International industrial experts Bill Condon, Matt McGregor, Derek Heed and Gregg Riva connected the sellers and buyer in the transaction.
North Auburn Logistics, located at 6607 South 287th Street in Auburn, was completed earlier this year and totals nearly 265,000 square feet of warehouse space on 15.3 acres of land. The building is fully leased to Raymond Handling Concepts Corporation, Holman Distribution, and BMC East, LLC, providing stable cash flow with the opportunity for upside potential in the future. The Reserve @ Woodinville is also fully leased, this time to four credit tenants: Black Raven Brewing Co., Mass. Electric Construction Co., Woodinville Custom Wines, and Paizo Inc. Positioned at 15902 Woodinville-Redmond Road in Woodinville, the property measures just short of 159,000 square feet on 8.8 acres of land. Proximity to the newly energized Paine Field, Route 522 and Interstate 405 allow for easy access. Construction concluded on The Reserve @ Woodinville in 2018.
“North Auburn Logistics and The Reserve @ Woodinville are two of the Puget Sound’s most outstanding new industrial properties, and the opportunity to acquire such strong-performing assets drew significant interest from potential buyers from across the investment and geographic spectrum,” McGregor noted. “Given the ongoing growth of e-commerce and the Puget Sound’s position as one of the largest gateways for trade from Asia, I am confident demand for and the value of our industrial product will only further accelerate in the near future.”
About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management.