Seattle – August 29, 2019 – Nitze-Stagen, an integrated real estate investment and property management company, announced today that it closed on its second opportunity zone project in Seattle.
Nitze-Stagen purchased an existing warehouse, located at 650 South Industrial Way in SODO, with the purpose of keeping high-quality, flexible industrial uses in the district. Built in 1964, the facility has ready access to the region’s largest transportation routes, ports and airports while offering tenants abundant parking and load-in/load-out options. The 38,000 sq. ft. facility has eleven dock-high loading doors accessing the warehouse and industrial spaces as well as a significant amount of high-quality, on-site office space.
650 South Industrial Way is a model of Nitze-Stagen’s commitment to preserving flexible warehouse and maker space in Seattle’s bustling SODO industrial district. As small-format facilities in the area continue to be consolidated, the availability of facilities like 650 South Industrial Way is growing ever scarcer and Nitze-Stagen is proud to provide flexible space suitable for a variety of users. Situated in a densely clustered industrial and manufacturing zone, the property has immediate proximity to the Seattle and Bellevue population centers.
“With the changing landscape of our city, Nitze-Stagen is focused on adaptive re-use, value-add and re-development projects in Seattle’s under-served markets,” said Peter Nitze, President of Nitze-Stagen. “Dropping vacancy rates in SODO have fueled significant rent increases across the marketplace. In the past five years, we have seen industrial rates increase by 34-percent and this trend is only going to continue upward with a shrinking industrial development pipeline.”
“Yet our city is a city of innovators, builders and makers who need light industrial spaces for product development, including those who depend on close proximity to their customer base. Seattle needs these kinds of spaces close-in to downtown, I-5 and the Port of Seattle that support its creative growth. Nitze-Stagen has always been committed to the health and vibrancy of Pioneer Square and SODO; now we have an added focus of keeping them affordable.” This June, Nitze-Stagen announced that they had completed their first opportunity zone acquisition with Canton Lofts, which is focused on providing work force housing in Pioneer Square. Canton Lofts will break ground in September and is not using any public funds to subsidize the rents at 80% of the area medium income.
With a total of 80 unique loft-style apartments, it will be the first opportunity zone residential project to break ground in the City of Seattle. And, with the purchase of 650 South Industrial Way, Nitze-Stagen is the first in the state to sponsor both commercial and residential projects with opportunity zone funds. Nitze-Stagen has also announced that they have moved from the Starbucks Center, in which they retain an ownership interest, to 159 South Jackson Street in the historic Washington Shoe building in Pioneer Square. “We love Pioneer Square,” added Peter Nitze. “It’s our city’s first neighborhood, yet for many years it has lacked the options that make a neighborhood attractive to a diversity of residents and uses. Moving to the neighborhood fits with our emphasis on affordability and vitality. The firm has already played a significant role in the renovation of iconic properties in Pioneer Square such as Union Station, Merrill Place and the Cadillac Hotel.