By Meghan Hall
Out of state investors are continuing to buy into the local commercial real estate market. This week, another industrial deal has closed as Seattle-based Teutsch Partners traded away the West Valley 29 complex to Irving, Texas-based Fortress Investment Group. According to public records, the two-building asset sold for $67,788,068, or about $244 per square foot.
The property is located at 3102 West Valley Highway N. and 1221 29th St. NW in Auburn. According to Teutsch Partners’ website, the industrial park was originally constructed in 1991 and totals 278,350 square feet. Building A, the smaller of the two, consists of 70,040 square feet. Building B is larger, at 214,450 square feet.
Both buildings were constructed on concrete slab at grade and offer 24’ clear heights, dock high and drive-in truck doors, and accessory office nodes. Teutsch Partners lists the asset as fully leased.
“Since completion the two buildings have been continuously leased to strong credit, well regarded, low-impact light industrial tenants,” Teutsch Partners states on its website. “The strong occupancy speaks to the park’s flexible configuration and low lot coverage.”
Google Maps indicates that 3102 West Valley Highway N. is leased to Ceva, a logistics firm. The other building, at 1221 29th St. NW, is leased to UPS Freight Forwarding and Pacific Power Group, a wholesaler.
The asset is located just off State Route 167, and a number of other businesses are located in the area. Those nearby include Estes Express Lines, Costco Optical Lab, Starline Carriers and Gensco Inc. The property is not far from either Tacoma or Seattle.
The local industrial market remains robust thanks to both high transaction and construction volume. During the second quarter, 4.4 million square feet was added to the region’s supply, which now totals nearly 355 square feet. According to data from Kidder Mathews, an additional 11.5 million square feet is under construction, of which 42 percent is pre-leased. Vacancy continues to decline and reached 5.36 percent at the end of the second quarter.
Investors have taken notice of these fundamentals. Sales volume mid-year reached $654 million. According to Kidder Mathews, the pace of sales is enough to surpass the record $1.2 billion of industrial property traded in 2019. In the future, this growth is expected to continue as employment sectors gain jobs, e-commerce picks up and supply chain issues are resolved.