By Kate Snyder
A warehouse in Bonney Lake traded hands in a deal that shows the region continues to catch investors’ attention. The building was purchased by an entity affiliated with the Walter E. Nelson Company, a Portland-based privately owned supplier and manufacturer of facility cleaning supplies and equipment, for $41 million, or about $213 per square foot, according to Pierce County public records. The seller was an entity affiliated with Chris Leier and Rylie Leier.
Kidder Mathews’ Executive Vice President Matt McLennan, SIOR, CCIM, and Executive Vice President Kraig Heeter, SIOR, represented the seller.
Located at 9713 233rd Ave. E, the building totals about 192,884 square feet and is positioned on 10.33 acres of land. It sits on the eastern edge of the city and is immediately surrounded by industrial, manufacturing and excavation businesses.
The Bonney Lake industrial market and demand for industrial properties there continue to grow, according to a report from Kidder Mathews. Owners/users are actively seeking facilities to purchase for their business instead of renting. The buyer is fond of the Bonney Lake area and is moving from their current location in Auburn, Washington, Kidder Mathews said in a statement.
“It is rare to see an owner/user sale of a building this size, let alone a transaction this size in the current market,” said McLennan. “We had to get creative on structuring the close date to accommodate a 1031 exchange, as well as factor in a leaseback for the seller’s business to facilitate the sale and the eventual move-in of the new owner.” Peak Design, the developer of The Cascade Building, is a prominent developer in the Bonney Lake submarket and Pierce County. They are currently focused on their next project, Peak 410, which features up to seven buildings and nearly one million square feet of additional Class A industrial space.
The Leiers used part of the building for operations of their company STL International Inc., which makes exercise equipment, according to a report from the Puget Sound Business Journal. As a result of the sale, the firm’s operations are slated to shift to another building positioned within a proposed 800,000-square-foot industrial project.
Founded in 1945, the Walter E. Nelson Company is a prominent janitorial and sanitation paper and packaging supply distribution firm for the Pacific Northwest, according to the company’s website. The firm currently employs more than 700 employees and provides supplies and training for industries such as building service contractors, healthcare, commercial property managers and office buildings, industrial and manufacturing, education and government. In 1995, the firm acquired property on Swan Island and constructed a “state-of-the-art” corporate office and warehouse facility. Since that time, branches have opened in Medford, North Bend, Seattle, Bend, Walla Walla, Spokane, Astoria, Eugene, Salem and Bellingham.
The Puget Sound region has seen multiple industrial properties traded in recent months.
One such property was sold in Kent by an entity affiliated with IDS Real Estate Group for $23.7 million, or approximately $251 per square foot, according to previous reporting from The Registry. The buyers were Pisco Capital Investments LLC and Stark Capital Investments LLC, both of which are affiliated with Walt Pisco, CEO of Cascade Engine Center, an engine distributor based in Seattle. Pisco Capital acquired a 77 percent tenant in common interest, and Stark Capital acquired a 23 percent tenant in common interest. The 94,225 square foot structure is located at 22220 68th Ave. S.
