Home Commercial San Diego-Based REIT Spends $60.9MM on Pierce County Properties

San Diego-Based REIT Spends $60.9MM on Pierce County Properties

By Meghan Hall

An entity affiliated with Realty Income Corporation has spent more than $60 million on two Pierce County properties, real estate records show. The deals come as demand for commercial properties–especially in the South Puget Sound–are rising rapidly.

In the larger of the two transactions, Realty Income spent $38,902,775 to buy 4602 Center Street in Tacoma from Inland Real Estate Investment Corporation. The site is currently occupied by a Home Depot. The building totals 117,064 square feet and sits on 11.16 acres. It was originally constructed in 2000, according to CommercialCafe. 

In the second deal, Realty Income spent $22 million to purchase an industrial asset from a private investor associated with Cook Investments NW, SPNWY, LLC. The property is located at 1331 208th Street East. The warehouse was originally built in 1966 and totals 50,540 square feet. It sits on just over 11 acres, according to a listing on LoopNet.

Realty Income Corporation is a real estate investment trust that typically invests in free-standing, single-tenant commercial properties across the United States, United Kingdom and Spain. Its diversified real estate portfolio currently spans 650 cities and the company has 11,000 properties under long-term, net lease agreements. The portfolio is currently 98.8 percent occupied, according to its website.

Even as COVID-19 has impacted commercial real estate, Realty Income spent $2.31 billion on acquisitions in 2020. Since 2010, the REIT has spent $22.1 billion to purchase various properties. A recent investor presentation shows that Realty Income is working to become a $50+ billion global company and a top 5 global REIT. Thus far, Income Realty is a Top 10 global REIT, with 15.1 percent compound annual total shareholder return since 1994. It has also posted a 4.3 percent compound annual dividend growth rate over the same period of time.