By Meghan Hall
Investor appetite for industrial product in Seattle remains high, thanks to the product type’s performance over the past year. In another recent industrial sale, Seattle-based Cascade Designs Inc. sold property in South Seattle for $24.275 million. According to public documents, the seller is an entity affiliated with 1st Avenue South Seattle Owner, a limited liability company.
The property is located at several parcels at 4000 1st Ave. S., 3857 2nd Ave. S., and 130 Dakota Street. 4000 1st Ave. S. includes a 56,608 square foot building on 1.2 acres of land. 3857 2nd Ave. S. is currently developed with a 10,960 square foot masonry building constructed in 1989. The building sits on just under an acre. 130 Dakota Street is developed with a 36,000 square foot building constructed in 1950.
The assets are located in the rapidly evolving Industrial District, between State Route 99 and Interstate 5. Centerline Logistics Corporation, DHL Express, Costco and UPS are just several of the businesses within the vicinity of the property.
Cascade Designs, founded in 1972, specializes in numerous brands of outdoor recreation products. The company was started by several former Boeing employees and today encompases the Varilite, MSR Global Health, and Therm-a-Rest brands, among others. It is unclear where Cascade Designs intends to move following the sale of its property.
A first quarter report released by JLL–the most recent available–states that the Puget Sound industrial market was off to a “hot start” as investors worked to get into the market. Over 13 million square feet of proposed developments were announced during the first quarter, and investors deployed more than $450 million into the sector. More transactions are expected due to “significant dry powder” waiting in the wings.
“With strong momentum from the second half of last year, 2021 is setting up to be a record-breaking year throughout the Puget Sound industrial market,” the report states. “The proposed construction pipeline is at an all-time high, e-commerce is still expanding, rents continue to push upwards, and investors across the nation are looking to capitalize on the feverish pace of the Seattle market.”
Nationwide, major industrial investors are making plans. Westcore announced its intention to spend $2.6 billion on industrial assets across the nation, while Dermody Properties closed its most recent industrial fund at $1.1 billion. Institutional investors, among other regional and local entities, continue to work to get into the market while they can.