By Kate Snyder
Tacoma’s industrial market continues to attract investors with the recent sale of a warehouse property. The parcel includes two buildings, according to Pierce County property records, and was traded for $16 million, or approximately $176 per square foot. The buyer was JM Eagle, and the seller was an entity affiliated with PWE (MULTI) QRS 14-85 Inc.
Located at 2330 Port of Tacoma Road, the property consists of an 86,600 square foot building that was constructed in 1966 along with a second asset totaling 4,320 square feet, property records show. The site is positioned in an industrial area and is surrounded by freight services as well as logistics, warehousing and transportation companies.
Based in Los Angeles, JM Eagle is the world’s largest plastic pipe manufacturer, according to the firm’s website. The firm’s line of plastic pipe includes polyvinyl chloride (PVC) and polyethylene (PE) pipes as well as complementary product lines and specialty pipe and unique product innovations. Formerly known as J-M Manufacturing Company, Inc., 15 years ago, the company merged with PW Eagle, Inc., another manufacturer of plastic pipe, fittings and tubing products.
Along with this recent sales transaction, Tacoma has seen leasing activity in its industrial sector.
Earlier this year, Kent-based Davis Property & Investment announced the signing of a major lease in the city for one of the firm’s new industrial developments, according to previous reporting from The Registry. Seattle-based Infinity Global Distribution decided to lease 248,000 square feet at Tacoma Central Logistics property at 1950 S. State St. DPI acquired the 13-acre site in the summer of 2021 for $15.5 million.
Although North America has seen a significant downturn in port volumes compared to midyear 2022, according to a recent Cushman & Wakefield U.S. & Canada 2023 Ports Update, the report also shows that port-adjacent U.S. industrial real estate markets are booming. These properties are among the most robust in the nation, with premium rents and minimal vacancy rates. Even though these markets have seen muted demand, due to reduced port volumes and economic challenges, some have showcased impressive absorption rates.