Home Commercial JDM Partners Acquires Commercial Office Property in DuPont, WA, for $30.5MM

JDM Partners Acquires Commercial Office Property in DuPont, WA, for $30.5MM

By Jack Stubbs

On Thursday, September 27th, an office property in DuPont, Washington, sold for $30.5 million, or approximately $87 per square foot, according to public documents filed with Pierce County. The buyer was JDM Partners, a real estate development company based in Phoenix Arizona. The seller, LSREF 2 Tractor REO LLC, shares the same address in Dallas, Texas, as Lone Star Funds, a global private equity investment firm.

Neither the buyer nor the seller responded to requests for comment about the transaction in time for the publishing of this story.

The sale was for three separate parcels, according to Pierce County records, one of which includes an office building located at 1000 Wilmington Drive in DuPont. The three-story building, construed in 1995, is a Class B property that comprises 348,505 square feet of rentable area, according to the listing on loopnet.com. The property currently serves as an operations center for State Farm Insurance, which has a lease that runs until November 2023.

The other two parcels included in the transaction comprise approximately 15 acres of land designated as “land and improvements” in public documents.

The three-parcel property is approximately one mile south of DuPont and fourteen miles east of Olympia. Additionally, the property is about seventeen miles south of Tacoma and is located in close proximity to access to Interstate-5.

Earlier this year, the roughly one million square foot DuPont Corporate Center, located at 2800-2980 Center Dr., sold for $60 million. In early January 2018, St. Louis-based developer CRG acquired the DuPont Corporate Center—on behalf of a number of investors—from New York-based Fortress Investment Group LLC.

The subject property is master planned as a 1.6 million square foot institutional quality business park on the former Intel Corporation campus in DuPont, Washington. Phase 1 of the development is designed to include a 750,200 square foot state-of-the-art distribution facility, which will be complemented by a 494,900 square foot distribution facility during phase two of the development.

JDM Partner’s recent acquisition of the State Farm Insurance-occupied office property in DuPont could be part of the company’s broader investment strategy. In April 2014, JDM purchased a State Farm Insurance Operations Center Portfolio, according to the developer’s web site, which includes fourteen properties in eleven states all leased to the State Farm Mutual Automobile Company. Combined, the fourteen Class A properties comprise 3.4 million square feet of rentable office space across 625 acres, according to JDM’s web site.