The purchase price for the three class A distribution centerswas $17.4 million, according to county property records. Therecorded price does not include sale taxes, broker commissions orthe penalty to pre-pay the loan on one of the properties. AndrewHarnish and Chris Spofford with Jones Lang LaSalle representedFirst Industrial in the transaction.

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While the parties involved declined to reveal the cap rate onthe deal, recent similar deals have traded in the mid-6% range,local industry experts tell GlobeSt.com. If that was the case forthis deal, then the acquired portfolio's NOI would be approximately$1.1 million. That works out to an average rent of around $0.40 persf, which is just a couple of pennies shy of the current marketrent, according to industry experts.

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Gary Danklefsen, regional director for First Industrial'sSeattle-Tacoma says the acquisition complements the company's328,500-sf, two-building "green" development at the First ParkMeridian Campus in Lacey, WA, near Olympia. First Industrial ownsan additional 256 acres of developable land in the Seattle-Tacomamarket that could support 3.8 million sf of development.

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"First Industrial was a great buyer for these sorts of assetsdue to their creative approach and strong ability to close,"Harnish said. "They were able to overcome every obstacle in thetransaction."First Industrial has been looking to gain a presencein the Kent Valley market for some time. As part of the deal, itassumed the loans tied to two of the three properties. A loan onthe third property was paid off despite a prepayment penalty afterthe lender tried to change the terms of the deal with regard to anypotential environmental liabilities.

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The property addresses are 19014 64th Avenue S., 18640 68thAvenue S., and 1901 Raymond Avenue SW in Renton, WA. An Internetsearch of the addresses turns up the names of several of thetenants, including the Beaulieu Group, an carpet and flooringcompany; Pacific Carpet Distributors; A&M PrecisionMeasurement; Partners West Book Distribution; Gex Pro; andWashington Shoe Co.

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