Firm identified and is developing parcel in land-constrained Seattle for Fortune 50 firm
SEATTLE (Sept. 15, 2021) — CRG, the national real estate development and investment firm, today announced it has broken ground on a 1,098,000-square-foot distribution center to be owned by Costco in Tumwater, Wash., about 60 miles southwest of Seattle. Located at 2311 93rd Ave., the 79-acre project is scheduled to be complete in August 2022.
CRG sourced the land, navigated the entitlement process and provided development services for Costco. In addition, CRG’s parent company, Clayco, is constructing the distribution facility, which was designed by Clayco subsidiary Lamar Johnson Collaborative.
“We are thrilled to leverage our local expertise and integrated development platform to source and deliver this business-critical distribution center for Costco, a large retailer requiring convenient access to the Port of Tacoma and Costco’s facilities in the Pacific Northwest,” said Shawn Clark, president of CRG. “The Seattle area is land-constrained for parcels that can accommodate large-scale industrial properties. Great sites in DuPont and Lacey have already been developed, and the City of Tumwater has very limited properties that can accommodate industrial projects larger than 200,000 square feet.”
The build-to-suit deal, worth $160 million, is one of Costco’s largest distribution facilities in the region. The distribution center will feature 175 car parking spaces, 418 trailer spaces and 129 dock doors. Construction started on August 16.
“This project validates our national strategy and development capabilities, highlighting the value of our integrated model at CRG and Clayco. Larger users, like Costco, are looking beyond the urban core to build new big box distribution facilities to meet the needs of major population centers,” said Chris McKee, principal and chief development officer at CRG.
The site provides easy access to I-5, with travel times of approximately 45 minutes to the Port of Tacoma and 75 minutes to Seattle. CRG typically develops under its national industrial brand, The Cubes, which features more than 30 current and planned industrial developments in key logistics markets across the United States. These buildings are constructed in locations with favorable market dynamics, intermodal access and strong local workforces.
CRG continues to grow its business in the Seattle area with a focus on developing state-of-the-art industrial assets targeting Fortune 500 users. In 2018, CRG developed The Cubes at DuPont, a three-building, 1.6-million-square-foot industrial park in DuPont, Wash. Using CRG’S U.S. Logistics Fund I (USLF I), CRG’s first national industrial development fund vehicle, the firm successfully completed the master planned development within two years and sold it to Duke Realty in December 2020 for $221 million. Its newest industrial fund vehicle, USLF II, launched in July with the goal of raising funds to develop $1.5 billion of ground-up industrial assets over the next three years.
CRG is a privately held real estate development firm that has developed more than 9,000 acres of land and delivered over 200 million square feet of commercial, industrial, institutional and multifamily assets exceeding $12 billion in value. CRG leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Columbus, Southern California, St. Louis and Philadelphia. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next generation users led to the creation of its industrial brand, The Cubes, and its multifamily brand, Chapter.
About Clayco: Clayco is a full-service, turnkey real estate development, master planning, architecture, engineering and construction firm that safely delivers clients across North America the highest quality solutions on time, on budget, and above and beyond expectations. With $3.8 billion in revenue for 2020, Clayco specializes in the “art and science of building,” providing fast track, efficient solutions for industrial, commercial, institutional and residential related building projects.