By Meghan Hall
Denver-based EverWest Real Estate Investors is continuing to expand its Puget Sound portfolio, closing on its second acquisition in the region in a matter of weeks. King County public records show that the firm purchased a Seattle industrial asset for $15.483 million, or just under $264 per square foot on February 17th. The seller of the asset is an entity affiliated with Trent Avenue Partners LLC.
The building is located at 6335 1st Ave. S. and is known as the Lonestar Building, according to a marketing flier for the property. Marketing materials state that the Class B building totals 58,733 square feet and sits on 2.55 acres. It is currently 100 percent leased to three separate tenants.
The offering memorandum for the property also states that the building features 17-foot to 22-foot clear heights and grade level loading. Potential first year NOI for the new owner totaled about $323,000.
“The submarket’s excellent location and desirability make it a highly sought after investment market,” the memorandum states.
The Lonestar Building’s location is in a highly industrial, but rapidly developing part of town, just south of Seattle’s South of Downtown neighborhood. It sits adjacent to the Duwamish Waterway and just off of State Route 509. The Union Pacific Railroad and SEATAC Airport are also located nearby.
The acquisition is EverWest’s second in recent weeks. Earlier in February, the company purchased a commercial packaging center in Tukwila for $12.15 million. EverWest plans to pursue a value-add strategy with the property in the future.
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. In December, EverWest announced a joint venture with Oxford Properties Group to expand its U.S. infilli industrial portfolio. The pair of firms are aiming to develop or acquire $1 billion of “infill, small-bay, industrial properties,” according to a recent statement from the firm.
“Our investment is based on an immediate go-to-market aggregation opportunity that exists today in the industrial sector and, in partnering with EverWest, we have found an operator with the proven experience and know-how to support Oxford’s continued growth in the sector,” said Ankit Bhatt, Vice President, Investments at Oxford Properties in a statement. “As one of the multiple avenues we’re employing to expand our overall U.S. industrial business, this partnership will accelerate the buildout of our national light industrial platform…”
The joint venture will operate over the medium term, and target high-growth industrial markets. Oxford Properties will provide most of the capital, while EverWest will manage acquisitions and day-to-day operations.