Deutsche Asset Management Inc., an affiliate of world-leading financial conglomerate Deutsche Bank Group, just added 19 more properties to its national industrial portfolio.
The 3.3 million square feet of newly acquired property, located in Seattle, Portland, San Francisco, Dallas, Chicago, Los Angeles and San Diego, was purchased last Thursday from International Airport Centers (IAC). Deutsche acquired the portfolio on behalf of an institutional investor through direct negotiation with IAC’s investment advisor, Perlmutter Investment Company.
We are excited about the acquisition of such a diverse portfolio of industrial real estate and appreciate the opportunity to work with IAC on this transaction
Of these properties, two entities are in the Seattle area and sold for $50.9 million, or $120 per square foot. Totaling 424,100 square feet, these properties consist of seven fully leased buildings, with tenants such as Watchguard Technologies, Odom Corporation and O S Winery. Locations and sizes for these facilities in South Seattle and Kent are as follows:
- 9100 15th Place South, Seattle – 53,000 square feet
- 1501 South 92nd Place, Seattle – 25,200 square feet
- 1521 South 92nd Place, Seattle – 24,000 square feet
- 1541 South 92nd Place, Seattle – 26,300 square feet
- 1600 South 92nd Place, Seattle – 43,000 square feet
- 1601 South 92nd Place, Seattle – 24,000 square feet
- 20401-20421 84th Avenue South, Kent – 228,300 square feet
“The portfolio’s geographic diversity across large distribution hubs and stable tenant base makes it an attractive investment,” said Todd Henderson, Head of Alternatives of Real Estate, Americas, in a prepared statement. “We are excited about the acquisition of such a diverse portfolio of industrial real estate and appreciate the opportunity to work with IAC on this transaction.”
Key economic indicators point towards further market strength as the second half of 2016 starts, says CBRE’s Puget Sound Industrial second quarter report. The region’s economy thrives and its local industrial market continues to be a beneficiary of this persistent growth. Vacancy has been tightening for the past five years, which appears to continue with a rate of just under five percent. Increasing regional and national consumer demand continues to fuel the growth of third party logistics, retailers and food companies. The report says that as these tenants look to expand in order to meet customer needs, lower inventory may cause rental rates to rise, which are now at 60 cents per square foot annually.
