By Meghan Hall
Charlie’s Produce, an independent fruit and vegetable distributor, has made a big investment in Seattle, closing on a $17 million deal for an Industrial District property. According to public records, the sales closed on October 16th and were divided into 13 different transactions. The sellers of the asset have tenancy in common, resulting in multiple different excise documents based on owners’ pro-rated shares of the property.
The properties are located at 4103 to 4143 Second Ave. S. All located on the same parcel, the property is developed with 104,099 square feet of space, built in 1953. In all, the property totals 3.28 acres. Charlie’s produce Seattle is currently headquartered at the site.
The asset sits at the heart of Seattle’s industrial district, just adjacent to the Union Pacific Railroad’s Argo Yard. Also nearby is a DHL Express Service Point, a FedEx Shipping Center and Costco Wholesale. The Harbor Marina Corporate Center, Centerline Logistics Corporation and others are located just across the Duwamish Waterway.
Charlie’s Produce Seattle originally opened in 1988 and operates as a full-service wholesale produce company throughout all of Washington. It is unclear how Charlie’s Produce plans to use the property in the future.
The third quarter saw the Puget Sound industrial market continue to chug along, with the delivery economy bolstering a need for additional warehouse space. According to a recent report by brokerage firm CBRE, demand for industrial properties has been larger than expected, despite some economic sectors feeling the impact of COVID-19.
“After six months of social distancing and working from home, the supply chain has re-worked itself to accommodate fewer restaurant visits, less travel, and the continued decline of brick and mortar stores.”
The change has largely benefitted logistics companies who deal in managing the flow of goods and services as retail continued to bypass physical locations. Aerospace and direct retail, however, were hit the hardest as containers declined 14 percent in August, and the aerospace industry lost 6,300 jobs during the third quarter alone. Across the Puget sound industrial market, vacancy was up to 6.1 percent, while lease rates held relatively stable, at $0.81 per square foot triple net across the region.