By Meghan Hall
When it comes to property transactions, industrial deals continue to lead the way in Seattle’s commercial real estate market. In another deal to recently close, an industrial asset in the South of Downtown neighborhood traded for $13.8 million. Public records indicate that a limited liability company affiliated with Lexus of Bellevue was the buyer. The seller was Seattle-based Leavitt Capital Companies, a local real estate development and investment firm.
The asset is located at 1750 4th Ave. S. The property totals just under half an acre and is developed by a 9,960 square foot building constructed in 1989. It is zoned for light industrial uses and is currently home to a mix of tenants, including United Reprographics, Zome and FedEx.
The property also sits at the heart of the SoDo district, near Amtrak and Seattle’s light rail station. A shopping center anchored by Filson and Krispy Kreme is nearby, as are a number of other commercial businesses. Starbucks Reserve, Toyota of Seattle, Mercedes-Benz of Seattle, Pacific Auto Body and the King County Atlantic Central Base are within the vicinity of the property.
The seller of the property, Leavitt Capital companies, was originally founded in 1979. The firm owns a number of assets near First and Fourth Ave. S. in SoDo, and its properties include the famous Pink Elephant Carwash, according to its website.
Throughout the second quarter of 2021, the Puget Sound industrial market continued to provide its position “as one ofthe fastest growing and highest performing markets in the country,” according to data by Newmark. Rental rates for industrial properties have risen 3.8 percent year-over year, and there was 4.1 million square feet of net absorption during Q2. Development in the area is also surging, with 2.7 million square feet of product delivered during the second quarter. 7.4 million square feet of space was delivered over the last year. Another 14.6 million square feet of industrial product remains in development.
The outlook for the sector is good, as the “Puget Sound economy continues to hum along and shows no indication of slowing down.” Regional unemployment has declined to below 5.1 percent, and as economic conditions improve, the industrial sector is expected to continue its growth.