By Meghan Hall
Bellevue-based Taylor Development has purchased an Arlington, Wash., industrial asset where a number of related projects already underway. In a deal that closed last week, Taylor Development purchased an aging industrial building for $19.25 million. The seller was an entity affiliated with Cook Investments NW Industrial Park LLC, based in Henderson, Nevada.
The property is located at 20815 69th Ave. NE. The property last traded in July of 2005 for $4.1 million, according to public records. The asset totals 2.5 acres and is developed with a commercial warehouse constructed in 1990. The building was used by Oso Lumber Distribution, based on data from the Snohomish County Assessor.
The property is not far from what will become part of a larger 52.2-acre project proposed by GS Venture Partners. Public documents indicate that an industrial business park is slated to rise, complete with nine buildings each containing about 120,000 square feet each. The development has been called Gayteway Business Park. Buildings C and D—the first two completion for the project—are up for lease. According to data from Broderick Group, Building C has 66,625 square feet to rent, with rates at $0.70 per square foot triple net for warehouse space and $1.70 per square foot triple net for office. The building was the first to be completed and is ready for tenant improvements.
Taylor Development has been active in the Puget Sound real estate market since 1997. The firm has successfully developed and sold $900 million in commercial and residential real estate. Other projects underway by the firm include Taylor Union Hill, a 60-acre heavy industrial site that will be transformed into a business park. Taylor Development is also working on Oak Tree Preserve, an 852 single-family home community in Lacey.
The Puget Sound industrial sector continues to fare well, despite questions about the future of major companies such as Boeing. However, at the end of the third quarter, Northend markets were commanding $0.73 per square foot, a decrease by 9.9 year-over-year, according to the most recent data released by Colliers International. The direct vacancy rate sat at about 5.1 percent and total inventory in the market came in at just under 35.8 million square feet. Demand for warehouse and distribution space, Colliers notes, still remains high heading into 2021 and will likely continue to propel growth within the sector.