By Jack Stubbs
The SoDo neighborhood of Seattle—anchored by the Port of Seattle and sitting just north of the Industrial District and south of the Central Business District—continues to evolve, as local- and out-of-town real estate investors look to capitalize on the dynamic and growing area.
As another recent indication that this trend is set to continue, on July 30th, Palo Alto, CA-based REDCO Development acquired a two-building property located at 60 S. Spokane St. for $22 million, or approximately $258 per square foot, King County records show. The seller of the property was Seattle Wire and Cable LLC based in Edmunds, WA.
According to the property description on the buyer’s web site—which indicates that REDCO acquired the property with Bain Capital Real Estate—the 4.56-acre site includes two Class B industrial buildings totaling 85,000 square feet.
The property was purchased from the former owner with short-term leaseback.
It is not entirely clear how much space is currently available across the two buildings at 60 S. Spokane St. According to Google Maps, some of the current tenants include Cascade Star India, Powering PC and Hardware Specialty Co.
The property is roughly three miles south of downtown Seattle via Interstate 99 and directly to the west of the city’s up-and-coming Beacon Hill neighborhood. Built in 1941, the property offers best-in-class creative industrial space, with prominent visibility from the West Seattle Bridge, according to REDCO’s web site. Long-term, the site is well positioned for continued last-mile delivery or redevelopment opportunities.
As rental prices continue to rise, and industrial land inventory closer-in to Seattle remains at a premium, traditional industrial owners and users are looking to reposition existing industrial properties. As one example, San Francisco-based Terreno Realty is repositioning South Seattle’s 234,000 square foot SoDo Row property located at 4786 First Ave. in an effort to attract a wider variety of tenants.
Terreno paid $42 million in 2017 for Sodo Row, previously occupied by Sears as a parts and service center.
Increasingly, owners and occupiers of space are looking for different ways to effectively utilize industrial space, as prices in the region continue to rise. “We have finally had enough companies relocate here, expand here, and we’re starting to see a focus on companies that are looking for more of a creative space to locate to, but not your traditional industrial,” explained
executive vice president at Kidder Mathews Tony Miltenberger said earlier this year. Kidder Mathews was hired to market the property for lease on behalf of Terreno. “South Seattle has historically been comprised of owner-users in the same facility for many years. Only recently have prices escalated enough to where people are looking to relocate as things get more expensive.”
REDCO is a third generation real estate development company that focuses on the adaptive re-use and repositioning of commercial properties, according to the company’s web site. REDCO concentrates primarily on value-add and infill opportunities across the West Coast.
