By Jack Stubbs
On Friday, December 7th, Indianapolis-based Duke Realty, a leading U.S. Industrial REIT, acquired two properties in the Des Moines Business Park totaling 546,000 square feet for $111 million, King County records show. The seller of the two properties was Panattoni Development Company, a California-based industrial real estate company. The transaction was recorded on December 11th.
Neither the buyer nor the seller responded to calls for comment about the transaction in time for the publishing of this story.
The sale was for two properties, located at 21202 and 21402 24th Ave. S. in Des Moines, that total approximately 546,000 square feet, according to public documents. The first property is a 246,000 square foot warehouse/distribution facility sitting on 11 acres that was built in 2018—which is referred to as Des Moines Business Park Building 4A. The second property is an approximately 300,000 square foot warehouse/distribution facility—home to a Bartell Drugs—that was also constructed in 2018. Public documents for the two buildings indicate that both structures are part of the Des Moines Creek Business Park.
According to the property description on Panattoni’s web site, the Des Moines Creek Business Park is a master-planned complex that covers 87 acres. Phase III of the development—on which construction was begun in March 2016 and completed in March 2017—consists of two distribution facilities totaling 502,435 square feet. Some of the current tenants in the business park include AmerisourceBergen Drug, Northwest Frozen LLC, Partners Crackers and XPO Logistics Supply Chain, Inc.
It is not entirely clear whether the two buildings as part of Phase III are the ones recently purchased by Duke Realty. Panattoni’s web site lists the address of the Des Moines Creek Business Park as 2141 South 211th Street, which is adjacent to the two addresses listed in public documents.
The description of the Des Moines Business Park on the web site of Sierra Construction—who was the general contractor for phases 1, 3 and 4—describes the property as a multi-phase industrial development: Phase 1 of the Business Park included the construction of three buildings totaling 535,958 square feet and Phase 3 included the construction of two warehouse buildings totaling 502,294 square feet on a 30-acre site. Phase 4 of the Des Moines Creek Business Park is situated on a 22.5 acre site right on Pacific Highway, which was previously occupied by Furney’s Nursery.
Duke Realty is one of the leading U.S. Industrial REITs, according to the company’s web site, and owns and builds facilities up to 1.2-plus million square feet in key distribution locations. The company looks to offer e-commerce and supply-chain companies a crucial edge and develops to ensure projects of the highest quality. The company provides a variety of services including development, leasing, property management and construction.
Founded in 1986, Panattoni is a privately-held commercial real estate development company that specializes in industrial, office, and built-to-suite projects. The company made an announcement about another project in the works in the Puget Sound region earlier this year. In early February 2018, PCCP LLC announced that it had formed a joint venture with Panattoni for the development of Glacier Peak, a 201,509 square foot industrial warehouse building located on a 10-acre site in Everett, Washington.