SEATTLE, Wash. (Aug. 17, 2021) – GTIS Partners (“GTIS”), a real assets investment firm that manages in excess of $4 billion in gross assets with a US focus on residential and industrial/logistics investments, and Ryan Companies US, Inc., a national developer, designer, builder, capital markets partner and real estate manager offering full-service commercial real estate solutions, have formed a Joint Venture to develop 65 S Horton St. (“the Project”), a four-story, class-A, last mile industrial/urban logistics property located in one of Seattle, WA’s Qualified Opportunity Zones. The building, once completed, will span 126,646 square feet and is expected to cost around $42.5 million.
The site is located just one mile south of downtown Seattle and adjacent to several Port of Seattle terminals in SoDo. SoDo is highly sought after for industrial development due to its unique access to both the urban core markets of Seattle and the Eastside, and the hub of bulk distribution facilities located farther south in Kent, Washington. Despite the district’s strong strategic location, much of the existing stock of industrial space is dated and functionally obsolete. There is also very little institutional ownership in the area, creating opportunity for new product managed by an institutional quality operator. Rents have grown approximately 9 percent per year since 2013 across Seattle’s “close-in” submarket, which includes SoDo, as a result of the MSA’s strong population and economic growth combined with a lack of new industrial supply.
Amit Rind, Managing Director at GTIS, said, “We are excited to partner with Ryan Companies to deliver what we view as a truly innovative multi-story product. We have received great feedback from potential users regarding the design and expect demand to be strong given the high barriers to entry and scarcity of class-A urban infill assets in Seattle’s close-in submarket.”
Marc Gearhart, Vice President – Development with Ryan Companies said, “We are excited to partner on 65 S Horton with GTIS and foresee much success for this project thanks to strong support from our financial partner and a market for a building design unlike any other. 65 S Horton models a new approach to parking, truck loading, shipping receiving, and material handling. We’re confident the program will provide a much-needed solution for proximity driven industrial and R&D users who desire to be close to the Seattle Central Business District.
The design provides for efficient and secure operations, with dual freight elevator access to floors two through four. The ground floor will feature a loading dock, shipping/receiving space, 10 covered docks and 85 parking spots.
Various e-commerce operators and third-party logistics providers, two major sources of demand for urban industrial assets, have expressed interest in the multistory product to help meet the need for more last-mile space and as a way to support their growth.
As e-commerce adoption continues and consumer expectations for delivery speed grow, demand for well-located urban industrial space has risen sharply and will likely continue to rise. Land constraints in densely populated urban areas, however, have limited new development and created a shortage of new, high quality supply. The innovative multi-story design helps to address this shortage by maximizing the amount of usable square feet of industrial space per square foot of land. By building vertically, the Project will have a much larger gross leasable area than could be achieved with a single-story product at the same location.
The Project is one of seven investments made to date by the GTIS Qualified Opportunity Zone Fund. In total, GTIS has invested in 14 deals located in Qualified Opportunity Zones including the recently sold RÊVE Boulder, which represents GTIS’ first completed project located in an Opportunity Zone. 65 S Horton St. also marks GTIS’ first investment in the Seattle MSA and the company’s first investment in a multi-story urban last-mile logistics facility.
Josh Pristaw, Partner, Head of Capital Markets and Co-Head of Brazil at GTIS, added, “We continue to make progress in the deployment of the GTIS Qualified Opportunity Zone Fund. We feel 65 S Horton St. is a terrific addition to the Fund and is well-suited for a long-term hold given the multitude of factors that are expected to drive strong rent growth over the next decade. The Project is well aligned with GTIS’s industrial/logistics strategy of investing in fast growing markets where we can service the explosive e-commerce needs of the consumer population.”
About GTIS Partners
GTIS Partners is a leading real asset investment and development firm headquartered in New York with offices in São Paulo, San Francisco, Los Angeles, Atlanta, Paris and Munich. The firm was founded in 2005 by Tom Shapiro and is managed by President Tom Shapiro and Senior Managing Directors Thomas Feldstein, Josh Pristaw, João Teixeira, Rob Vahradian and Amy Boyle. The firm manages over $4 billion in gross assets and is active across a wide range of real estate sectors including single family and multifamily housing, office, industrial/logistics and hospitality as well as renewable energy infrastructure and opportunity zone investments. The firm invests at various points in the capital structure including credit, common equity and structured equity. In the US, GTIS has invested in over 130 assets across 40 unique markets including growth areas such as Phoenix, Dallas, Houston, Denver, Atlanta, Tampa and Charlotte. In Brazil, GTIS is among the largest real assets private equity firms with holdings including office, residential, logistics, hospitality and renewable energy investments. Marquee assets in São Paulo include the Infinity office building and Palácio Tangará, a five-star resort style hotel. For more information, please visit www.gtispartners.com.
About Ryan Companies US, Inc.
Founded in 1938, Ryan Companies offers comprehensive commercial real estate services as a national developer, architect, capital investment consultant, builder and real estate manager with a focus on bringing lasting value to its customers and the communities in which it works. Ryan market depth includes retail, industrial, healthcare and senior living. Ryan development and corporate build-to-suit work spans a wide range of product types including office, mixed-use, hospitality, multifamily housing and mission critical facilities. Ryan has nearly 1,600 employees in 15 offices and has completed projects in 39 states. For more information, visit ryancompanies.com.