Ivanhoé Cambridge announced earlier this week that it had acquired a portfolio of properties part of the Evergreen Industrial Properties from TPG Real Estate. There were three properties in the greater Puget Sound region, which were sold for $42.8 million.
One of the properties is located at 933 Thomas Ave. SW in Renton. It is a 115,900 square foot distribution facility that sold for $15.2 million, or approximately $131 per square foot. Another property is the Des Moines Logistics Center, which has four buildings located between 19216 and 19320 Des Moines Memorial Drive S in SeaTac. The four buildings total nearly 137,500 sure feet and they sold for $17.5 million, or roughly $127 per square foot. The final structure is the 100,000 square foot property located at 1220 Second Ave. N in Kent, which sold for $10.1 million, according to public records, or $101 per square foot.
In addition to the locations in the Puget Sound region, Evergreen owned 150 properties across the country, comprising of approximately 16 million square feet across 18 major markets, including Denver, Charlotte, Atlanta, Chicago and Dallas. Evergreen’s facilities offer strategic infill locations to distribution, e-commerce, and light manufacturing customers with a focus on “last mile” distribution, according to a statement from Ivanhoé.
“We are very enthusiastic about this acquisition. We started looking at companies in the industrial real estate sector over two years ago with the intention of making a strategic investment in this asset class,” said Arthur Lloyd, president, Office North America, at Ivanhoé Cambridge in a statement. “Industrial real estate offers an attractive current return and good diversification for our office portfolio in terms of underlying economic drivers. We believe we have found the right fit with Evergreen. We continue to look for opportunities as we plan to grow our industrial business in the years to come.”
TPG Real Estate created Evergreen in 2014, seeding the platform with a 7.5 million square foot portfolio acquisition, according to the companies. Through 11 distinct acquisitions, Evergreen then acquired an additional 127 properties in 18 targeted markets.
“In creating Evergreen, we saw an opportunity to build a platform that was positioned to benefit from a dynamic sector shift to “last mile” and infill locations by light industrial and e-commerce users,” said Avi Banyasz, partner and co-head of TPG Real Estate in a statement. “Working with the Evergreen team, we have developed a solid operating platform that has continued to drive performance and growth. We have enjoyed partnering with the company over the past few years and believe it is well-positioned to continue to grow under Ivanhoé Cambridge’s ownership.”