One of the biggest challenges for the industrial market in locations close to high-density urban centers is space to build more warehousing and logistics properties. That is why any available parcels that offer proximity to ports and highways garner a lot of interest from prospective buyers.
In a transaction that closed today, Bridge Development Partners spent just over $158 million to acquire 19 parcels across 160 acres in South Tacoma along Burlington Way in an effort to expand its footprint across the Pacific Northwest. The seller was Fort Worth, Tex.-based BNSF Railway Company.
Bridge Development is planning to redevelop the site into a massive, 2.5 million square foot industrial complex called Bridge Point Tacoma 2MM. The site has been vacant and in disrepair for several years, according to a statement from the company. Upon its acquisition, the company will continue to maintain remediations performed prior to its purchase and any future required remediation for its proposed development.
Bridge Point Tacoma 2MM will span four buildings and feature approximately 20 acres of trailer storage space, in addition to 40-foot clear heights and expansive truck courts. The project can cater to tenant requirements from 100,000 square feet to 1.5 million square feet. Bridge will break ground on the state-of-the-art industrial campus in August of 2022 and expects to deliver the project in the summer of 2023, according to the company.
“As more e-commerce, technology and logistics users flock to the Pacific Northwest — and the Greater Seattle region in particular — Bridge is excited to bring such a strategically located development of this scale to market. The proximity of this site to so many key transit options, such as the Port of Tacoma and I-5, make it ideal for a variety of users meeting the ever-increasing demand for last-mile and next-day delivery,” said Justin Carlucci, Partner for Bridge’s Northwest Region in a statement. “Our operations across the Northwest region have grown exponentially during our three and a half years in this market, and we look forward to creating more valuable infrastructure that can support the economy and the influx of new consumer and business populations.”
Todd Clarke, Matt Murray, Matt McLennan, and Ty Clarke of Kidder Matthews represented Bridge Industrial in the transaction.
Bridge Point Tacoma 2MM benefits from a prime location with close proximity to I-5, Port of Tacoma, and major population centers. Users will have direct access to three 4-way interchanges onto I-5 and Highway 16, and will also benefit from the site’s position — within a 45-minute drive of four of the state’s six largest cities, ample labor population, and hubs for consumer activities.
The site is Bridge’s second 100+ -acre acquisition in the past ten months, and its fifth acquisition in the Seattle market within the past year. In December of last year, Bridge acquired 117 acres in Milton, Washington for the future Bridge Point I-5 Seattle, a 2 million-square-foot, state-of-the-art industrial campus. Since first opening its Seattle office in 2018, Bridge has acquired and/or developed over 7.02 million square feet of Class A industrial product throughout the Northwest Region. Bridge continues to seek opportunities to develop modern industrial facilities in the most supply-constrained core infill industrial markets.
The company is an international investment and development firm with offices in Chicago, Miami, Los Angeles, London, Parsippany, NJ, and Bellevue, Wash. Its focus is targeting industrial real estate located in what it calls “supply-constrained core markets.”
Since the onset of the global pandemic, the industrial market across the region has continued to churn and the volume of goods transported through the regional ports has continued to grow. The Northwest Seaport Alliance reported that Seattle and Tacoma handled record-breaking volumes in May of 2021, growing 38.4 percent compared to May 2020, according to a second-quarter of 2021 Seattle Industrial Market Report by Kidder Mathews. Full imports also set a record for the month, increasing by 54.1 percent, while full exports increased 4.9 percent. Year-to-date volumes improved 18.7 percent with full imports growing 31.7 percent and full exports declining 9.6 percent.
Leasing continues to be strong, according to Kidder Mathews, with 7.2 million square feet leased and scheduled to move in over the second half of 2021.