Dalfen Industrial is growing its footprint across the Puget Sound region, recently acquiring an industrial building in Tukwila for $34.8 million, or about $262 per square foot. The warehouse building is located at 18375 Olympic Avenue S. and was sold to the Dallas-based real estate investment company by entities affiliated with Campbell Real Estate and Bellwether Properties.
The deal was arranged by Matt McGregor and Bill Condon of Colliers, which represented both the seller and buyer in the transaction.
“This was a winning transaction for both our clients,” said McGregor. “The Kent Valley industrial market is as tight as I’ve seen it, with vacancy for manufacturing facilities like the Rainier building sitting at 2.3%. Opportunities to acquire this caliber of asset in this submarket and retain a stable, long-term tenant are incredibly rare.”
Built in 1978, the property totals 132,367 square feet and currently serves as headquarters for Rainier Industries, a company specializing in the manufacturing of tents, yurts, retractable power screens, awnings and more.
The property is located in a primarily industrial portion of Tukwila near Kent, with nearby buildings including an Amazon fulfillment center and the Starbucks Roasting Plant. The property is also closely situated to Interstate 5, providing easy access to Seattle.
The property is the newest move into the Pacific Northwest by Dalfen Industrial. As well as the newly acquired asset, Dalfen Industrial also owns the 711,855 square-foot Tacoma Supply Chain Center at 4907 180th Street and 17612-17613 Gravel Road.
The Greater Seattle area has become an increasingly popular choice among industrial investors, as demand in the region heightens. According to a first quarter industrial market report from Newmark, the region’s vacancy rate hit 3.3 percent in the first quarter of the year. At the same time, rental rates continue to rise to $11.77 per square foot per month. With more than three million square feet of industrial space absorbed in the first quarter of 2022, the region is beginning to see new development as well. The report suggests that the high amounts of demand could be leveled out by the more than 10 million square feet – or about 10 percent of the nation’s total industrial inventory – currently under construction.