By Meghan Hall
Industrial real estate properties are continuing to catch the eye of investors. In a deal that closed on February 3rd but only recorded just last week, Denver-based EverWest Real Estate Advisors purchased a commercial packaging center in Tukwila for $12.15 million. According to public documents, the seller is affiliated with West Valley Highway Real Estate Holdings LLC.
The property is located at 17100 West Valley Highway and is currently occupied by Redi-Bag, which calls itself “The Pacific Northwest’s Premier Flexible Packaging Producer.” Redi-Bag specializes in the manufacturing of low-density film and protective flexible packaging. The firm has been operating in the Western United States for more than 25 years.
“Redi-Bag has the flexibility and experience to serve an array of end-users through its engineering and production capabilities,” states the firm’s website. “We have the ability to work with each and every customer to produce the poly bag or film that is right for you.”
EverWest’s purchase included two parcels. The first parcel according to King County parcel data, is a vacant parking lot totaling about 1.18 acres. The parcel is zoned for industrial uses. The second parcel is home to Redi-Bag and includes a 90,736 square foot building constructed in 1964. The building includes a 7.5 percent office finish, between 24-foot and 28-foot clear heights, and heavy power and rail access. The building sits on just over two acres.
EverWest specifically targets a mix of core and core plus, value-add and investment funds as part of its real estate strategy. The firm has made a habit of buying and building in some of the most desirable markets in the country. According to its website, EverWest plans to pursue a value-add strategy with the property in the future.
The Kent Valley, where the asset is located, has just over 99 million square feet of industrial product and is perhaps the largest submarket within the Puget Sound. At the end of the fourth quarter, total vacancy sat at 5.6 percent, and asking rents came in at about $0.76 per square foot. A recent report released by JLL notes that while the submarket did see negative absorption in 2020, consumer demand and e-commerce pushed the local industrial market through 2020. More than $1 billion in industrial trades characterized 2020, none of which were categorized as significant portfolio sales. Interest in the industrial asset class is set to continue in 2021, JLL predicts, as pre-leasing levels remain healthy and local industries expand.