By Meghan Hall
A newly-developed industrial asset in the growing industrial hub of DuPont, Wash., has a new equity partner. According to public records, Duke Realty paid $155,144,534, in the deal, which was finalized on January 14th. The equity partner is associated with USLP Zeta Dupont LLC and Real Estate Tax Advisors LLC.
The deal is a recapitalization of 2700 Center Dr. Duke originally constructed the project in 2012, and currently it is leased to Amazon.
The property is adjacent to The Cubes at Dupont industrial complex. The property is a three-building, 1.6 million square foot asset part of Intel’s former campus. The asset includes an existing 340,000 square foot building plus two distribution centers at 750,200 square feet and 494,000 square feet a piece. The larger distribution space is leased to Kimberly Clark.
“A strategic regional logistics hub, The Cubes at Dupont is located in immediate proximity to Interstate 5, less than 20 minutes from the Port of Tacoma, within one hour of Seattle and two hours of Portland, Oreg.,” states CRG, the original developer of the property, on its website. “The campus also benefits from close proximity to DuPont’s core retail and housing which contribute to a strong labor pool.”
Duke Realty acquired the asset during the fourth quarter of 2020 for $221 million. At the time, it was 69 percent leased. The asset is also just adjacent to two Amazon fulfillment centers, an Amazon recruiting office, IKEA and Regalo.
According to a recent release, Duke Realty experienced a “record breaking” year in 2021, its 50th year in business. The company’s in-service and stabilized in-service portfolios reached 98.1 percent and 98.7 percent leased, respectively. The company also signed 141 renewal leases and 134 new leases. The company also started a record $1.4 billion in new development projects. The company also exceeded $1 billion in development starts and $1 billion in development deliveries.
“The company’s success has been driven by continued e-commerce growth and consumer spending, combined with record low vacancy rates across the country,” said Duke Realty Chairman and CEO, Jim Connor. “Our investment in coastal tier 1 markets, markets with the highest rent growth and lowest vacancies, and the execution of key transactions throughout the year proved fruitful during a challenging time for the world experiencing a pandemic and supply chain issues. As we head into the next 50 years, I am confident that our experience and talent will continue to drive our performance.”
