Los Angeles, CA, February 5, 2024 – PCCP, LLC announced today it has provided a $25 million loan to CapRock Partners for the acquisition of The Reserve at Woodinville, a 100% leased, 159,869 square foot (sf) Class A industrial building located at 15902 Woodinville-Redmond Rd NE, in Woodinville, WA. The property is within the Puget Sound’s high barrier-to-entry, Eastside industrial market.
Built in 2018 and situated on an 8.8-acre site, the single-loaded, Class A industrial building is fully occupied by four tenants with 2.4 years of WALT (Weighted Average Lease Term). Among its features are 30’ clear heights, 19 dock-high doors, four grade-level doors, 137 auto spaces, T-5 energy efficient warehouse lighting, and ESFR sprinklers.
“We are pleased to transact again with CapRock Partners, an experienced industrial owner and developer,” said Dorian Farhang, Managing Director with PCCP. “This institutional-quality asset was acquired at a discount to replacement cost and is located in the Eastside industrial market, which is currently the top-performing submarket within the Puget Sound industrial area in terms of lowest vacancy and highest asking rates.”
“The Reserve at Woodinville is an exciting acquisition for our firm as we expand into the Pacific Northwest,” said Sean Grubbs, First Vice President, Capital Markets with CapRock Partners. “Working alongside PCCP on the acquisition financing was seamless and we greatly appreciate another smooth execution.”
JLL worked on behalf of CapRock Partners to secure the non-recourse loan. The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Greg Brown and Senior Directors Peter Thompson and Kaden Eichmeier.
The Woodinville submarket of Seattle has 5.5 million sf of warehouse space and is approximately 2.4% vacant. Fundamentals are strong due to supply constraints and accessibility to an affluent population base. Woodinville, along with the greater Eastside market, is generally a local- and regional-serving distribution market proximate to the affluent population bases in Bellevue, Redmond, and Kirkland. No new inventory was delivered last year and there are no new projects currently under construction. The property is strategically located just two miles from I-405 and SR-522, with access to I-5 within nine miles, providing efficient service to the Seattle-Tacoma-Bellevue MSA.
About PCCP, LLC: PCCP, LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has $23.1 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco, Atlanta, and Los Angeles, PCCP has a 25-year track record of providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP underwrites the entire capital stack to exploit inefficiencies in the market and provide investors with attractive risk-adjusted returns. Since its inception in 1998, PCCP has managed, raised or invested over $39.7 billion of capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with experienced operators seeking fast and reliable capital.
About CapRock Partners: Founded in 2009 in Newport Beach, Calif., CapRock Partners is a privately owned investor and developer of industrial real estate in the Western and Central United States. With approximately $2.9 billion of assets under management or advisement as of June 30, 2023, the company specializes in acquiring middle-market value-add industrial assets, developing large-scale institutional-quality Class A industrial warehouse facilities in key locations, and providing third-party asset management services for institutional investors. The firm is actively acquiring land for development and middle market value-add assets across the Western and Central U.S. Since inception, its total investment and development pipeline exceeds 30 million square feet of industrial real estate.
About JLL: For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 105,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
