By Meghan Hall
Industrial assets continue to be the darling of the commercial real estate sector this year, with eager investors continuing to snap-up assets where possible. In a transaction that just recently closed, Buildings A, B, C and D of the Woodinville West industrial complex have traded for $27.8 million. The seller of the property, Woodinville West LLC, is affiliated with Marie Toikka of Bellevue. The seller was Woodinville CD LLC, affiliated with David Yuchasz, a local broker and investor.
Vall-Spinosa, an executive vice president with Kidder Mathews, represented the buyer in the transaction.
“Woodinville West is an exceptional, close-in product that was 95 percent leased at the time of sale,” said Vall-Spinosa in a statement. “With the buyer’s creativity and our resources, we were able to navigate this large sale during the lockdown and challenging pandemic times.”
The four Class B buildings are located off of Woodinville-Redmond Road NE. According to data from CommercialCafe, the buildings sit on more than 12 acres of land. Buildings A and B were initially built in 1990, and combined are just over 45,000 square feet. Buildings C and D and were originally constructed in 1999. Together, the two buildings have 119,144 square feet and come with 214 parking stalls.
The asset sits just outside of downtown Woodinville, minutes from Interstate 405 and State Route 522. Businesses in the immediate vicinity of the property include Baier Marine, SaltWorks Inc. and Zipfizz Corporation.
The sale of the Woodinville West buildings dwarfed the largest transaction in South King County during the second quarter: Cabot Properties’ acquisition of TTF Aerospace’s building in Auburn for $10.5 million, or $153 per square foot. A number of other industrial sales have closed in recent weeks. In Auburn, Prologis purchased residential land for $9.6 million, although no plans for the property are available. In Renton, EverWest began a self-proclaimed “buying streak,” closing on another industrial asset for $29.5 million.
In South King County, prices for older existing buildings range from $150 per square foot to $200 per square foot, while land values have increased up to $35 per square foot for fully improved sites, according to Kidder Mathews. South King County had 7.2 million square feet of vacant space at the end of the second quarter—nearly half of all vacant space in the Puget Sound— which may climb in coming months as companies are forced to take a careful look at their business models amidst COVID-19.