By Meghan Hall
Global investment firm TPG has made a big investment into the Puget Sound industrial market, closing on eight different deals to date. The transactions all closed on May 27th. Combined, TPG paid $134 million for properties in Kent, Seattle and Tukwila. The seller, according to public documents, is San Francisco-based Lift Partners Real Estate.
In the largest deal, TPG paid $46.2 million for warehouse and industrial space at 4901 Airport Way and 655 S. Edmunds St. in Seattle. The property is a 7.2-acre property with a 28 door truck terminal.
Also in Seattle, TPG paid $11.2 million for 820 S. Adams St. a multi tenant industrial building developed in the 1950s, and $8.5 million for 5201 First Ave. S., a 26,420 square foot building leased to Tiki Motors. For 820 S. Adams St., Lift originally paid $6.9 million.
In the smallest deal to record thus far, TPG bought 4809 and 4811-4813 Airport Way S. for $6.8 million. Lift Partners purchased the Airport Way S. asset in December of 2020 as part of portfolio acquisition. Lift paid $22.33 million for the buildings, along with two assets in Redmond and Woodinville, Wash. Lift acquired the Airport Way property, which consists of 24,415 square feet spread across two buildings, for $4.53 million. The property is 100 percent leased.
In Kent, an industrial asset at 2241 76th Ave. S. traded for $22.3 million. Home to Floform Countertops, Lift originally acquired the property for $16.5 million. The property is developed with a 100,337 square foot industrial building, according to Lift Partners’ website.
Also in Kent, TPG spent $12 million to acquire 7835-7845 S. 212th Street. The property is developed with a 35,136 square foot value-add industrial building. In a third transaction in Kent, Lift Partners sold 7418 S. 228th St. for $9.4 million. Lift originally paid $5.9 million for the single-tenant asset in the first quarter of 2019. The property totals 48,480 square feet.
In Tukwila, TPG purchased 1230 Andover Park E for $17.6 million. The property is developed with a 79,061 square foot industrial building. Lift also acquired this asset in the first quarter of 2019, paying $11.25 million for the three-building, multi-tenant asset.
According to industry sources familiar with the transaction, the deals were part of a recapitalization and sale of Lift Partners’ Fund I assets. Fund I is Lift Partners’ first fund, which closed in July of 2018 and raised $102 million in commitments. The fund targeted value-add investments of industrial and office properties along the West Coast.
Currently, TPG is headquartered in San Francisco, Calif., and Fort Worth, Texas. The firm has more than $91 billion in assets undermanagement and 12 offices worldwide. Within its industrial portfolio, TPG focuses on industrial technology, supply chain and logistics, business and industrial services, packaging, manufacturing and distribution. The company focuses on growing end markets.