Interest in Puget Sound industrial space has been a constant in the region over the last couple of years, and investors from across the globe have looked at establishing and expanding their presence in the market. New York-based Fortress Investment Group is one of those investors, and the company just expanded its industrial footprint with an acquisition in Sumner, Wash. The company paid $25 million (roughly $147 per square foot) to acquire a 170,000 square-foot property located at 1901-2005 Fryar Avenue, according to public documents. The seller was Enumclaw-based The Wattles Company.
The industrial property sits on a 6.63-acre site, according to the asset’s website on CommercialCafe. It is considered a Class-B asset, and it was developed in 1950. The building also includes 76 parking spaces.
There is no indication at this time if the company plans to redevelop the property, but the company has been expanding across the Puget Sound region in the recent past. According to previous reporting by The Registry, Fortress has been acquiring properties in the industrial and retail sectors for some time. In May of 2021, the company spent $14.33 million to acquire the Macdonald Miller Warehouse in Seattle located at 7707 and 7717 Detroit Ave. SW. In May of last year, Fortress purchased a property at 2326 Airport Way S in Seattle for $12.8 million.
The company has also been purchasing retail assets across the region. In 2019, the company paid $17.3 million to acquire two CVS-anchored properties in Federal Way and Lakewood, as well as $11.3 million to acquire a Safeway property in Everett.
Fortress Investment Group describes itself as a leading, highly diversified global investment manager with approximately $53.3 billion of assets under management as of December 31, 2021, according to the company’s website. The company was founded in 1998, and it manages assets on behalf of approximately 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
The industrial market across the greater Puget Sound region has been reaching new highs, according to recent industry reports. Kidder Mathews recorded record-high net absorption of just over 13 million square feet in 2021, with 4.1 million square feet occurring in the 4th quarter, alone. The previous annual high was 6.8 million square feet in 2006. The market saw the Vacancy rate for the region decrease from 4.7 percent to 4.4 percent as absorption outpaced deliveries. This moved the average asking rental rate from $0.90/square foot/month to $1.05/square foot/month. Sales volume set a record in 2021 with $1.8 billion sold, eclipsing the previous record of $1.2 billion in 2019, stated Kidder Mathews.