By Jack Stubbs
There are several in-the-works developments occurring in Woodinville, a city which is adjacent to the growing cities of Bothell and Kenmore and roughly six miles north of Redmond. The recent sale of a 25-acre parcel of undeveloped land—including two industrial/warehouse properties comprising approximately 412,000 square feet—demonstrates that interest in the Snohomish County city of Woodinville looks set to continue.
On July 31st, in a transaction that was only recently recorded, Los Angeles, CA-based Colony Capital Inc., a leading global real estate and investment management firm, spent $68.35 million to acquire a 25-acre industrial property, Snohomish County records show. The seller of the property was Reno, NV-based Dermody Properties, a national company that focuses on the development, acquisition and management of logistics and industrial real estate assets.
The recent sale included thirteen separate parcels—located at 7919, 7931, 8009, 8025, 8107, and 8131 W. Bostian Road—which comprise approximately 25 acres of undeveloped land (designated in public documents as “land and improvements”) along with two warehouse/manufacturing buildings: Building A is a one-story commercial warehouse building constructed in 2018 that totals just under 275,000 square feet square feet, while Building B is a two-story property—also built in 2018—which totals just under 137,000 square feet.
The properties are approximately six miles north of downtown Woodinville and ten miles northeast of Kenmore, sitting immediately adjacent to Washington State Route 522, which connects Woodinville with various cities to the south like Bothell and Kenmore.
Colony Capital looks to create long-term value through investing in real estate and real estate-related assets and has $43 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.
The recent sale of the 25-acre property comes several months after Colony Capital purchased another property from Dermody Properties. In early February, Colony Capital spent $27.2 million or approximately $129 per square foot, to acquire a 210,134 square warehouse/industrial building in Lakewood, a city just south of Tacoma, according to The Registry’s reporting.
There have been a number of commercial and industrial transactions recorded in the city of Woodinville over the last couple of quarters, with the latest transaction indicating that the city continues to be viewed with interest by local and out-of-town investors alike.
In late June, Wood Mountain LLC acquired eight parcels—comprising roughly thirteen acres of vacant commercial land— for $16.2 million from Woodinville Village Partners LLC. The eight-parcel property is adjacent to where an approximately 24-acre master-plan development is in the works: Woodinville Wine Village, located at 14419-14421 Woodinville-Redmond Rd., is a mixed-use village that could ultimately comprise over 750,000 square feet of residential, office, retail and wineries, according to MJR Development’s web site. Tiscareno and Associates is the master-plan architect on the project, which would add 20 buildings to the site. Woodinville Village will also include three mixed-use residential buildings designed by Weber Thompson.
