By Jack Stubbs
On Wednesday, February 27th, an office/warehouse building in Lakewood, just south of Tacoma, sold for $27.2 million or approximately $129 per square foot, Pierce County records show. The buyer of the asset Los Angeles-based Colony Capital, a global real estate and investment management firm. The seller was Dermody Properties, a logistics and industrial real estate investment company based in Reno, Nevada. The transaction was recorded on March 1st.
The subject property, located at 3401 96th St. S., is a one-story warehouse/storage property that totals 210,134 square feet, according to public documents. Sitting on approximately thirteen acres, the property was constructed in 2017.
It is not entirely clear how much space is currently available in the office/warehouse building. According to Google Maps, the property is home to Electrolux Major Appliances, a retailer of home appliances.
The property is roughly eight miles south of Tacoma via Interstate-5 and about eighteen miles southwest of Federal Way and Auburn.
There have not been too many transactions posted in Lakewood over the last few months; however, one recent sale in particular indicates that from an industrial real estate perspective, demand in the area continues. In mid-December 2018, Boston-based TA Realty acquired the Lakewood-Tacoma Gateway Logistics Center for $65.6 million, or approximately $140 per square foot, from California-based Panattoni Development Company, an international real estate developer that specializes in industrial real estate development.
According to Panatonni Development’s web site, the Tacoma Gateway Building is a Class A industrial warehouse—completed in June 2018—that totals 467,526 square feet. Located at 14801 Spring St. SW, the asset is approximately seven miles south of downtown Lakewood and adjacent to Interstate-5.
Colony Capital looks to create long-term value through investing in real estate and real estate-related assets and has $44 billion worth of assets under management, according to the company’s web site. The company’s industrial platform primarily invests in U.S.-based light industrial properties generally ranging in size from 50,000 to 250,000 square feet.
Dermody Properties has been developing, acquiring, and investing in logistics and industrial real estate for nearly 60 years, according to the company’s web site. In the Pacific Northwest region, including Washington and Oregon, the company’s portfolio comprises five available properties, with three projects currently under construction. Dermody Properties’ assets in Washington state include Meridian Campus Corporate Park, a 777,579 square foot campus in Lacey; and the LogistiCenter at Woodinville, which is a 409,500 square foot project.