By Meghan Hall
Industrial sales across the Puget Sound region have continued at a steady pace over the past several weeks, with another transaction adding to the mix. In a deal that closed on May 1st but that was only recently recorded, Eden Prairie, Mont.-based grocery retailer SUPERVALU disposed of a Tacoma distribution center for $42.25 million. According to public property documents, the buyer was Los Angeles, Calif.-based Industrial Realty Group, also known as IRG.
The property is located at 1525 and 1801 E. D Street, and 490 and 495 E 19th Street. The transaction included five parcels of varying sizes. The largest of the properties, at 1525 D Street, has a 435,704 square foot mega warehouse. Just one story, the building was originally constructed in 1965. 1801 E D Street has one, 22,000 square foot building constructed in 1963, while 490 E 19th has a 11,200 square foot service garage. 495 E 19th Street is developed with a 48,234 square foot cold storage warehouse constructed in 1970. In all, IRG acquired 517,138 square feet of warehouse space.
IRG is a privately held real estate development and investment firm, that over the past 40 years, has acquired or developed more than a billion dollars’ worth of corporate government properties, according to its website. Currently, IRG manages 150 properties in 28 states with 100 million square feet of rentable space. Most of the company’s acquisitions are purchases made after its current owner no longer needs the site; once purchased, IRG then repositions the property to meet current market requirements.
Pierce County, where the properties are located, remains one of the most active in the region when it comes to industrial real estate and development. According to a report released by Kidder Mathews, at the beginning of 2020, there were 13 buildings totaling more than 2.5 million square feet under construction in Pierce County. The county also had the highest positive absorption of the first quarter, with just under 580,000 square feet. Leases signed, but not moved in, total more than 1.67 million square feet. While new buildings are selling for up to $185 dollars per square foot, while second generation buildings garner between $50 and $100 per square foot on the market.
