The seller was Levitt Trust, a New York-based investment firm with a commercial portfolio valued at $500 million. Ted Gibbons, president of Investment Realty Advisors, was the listing broker. The new owner is the Rivily Family, a Seattle-based family that owns multiple properties in the Kent Valley. They were represented in the transaction by Rex Noffsigner of Colliers International.
Goodyear Tire, the world's largest tire manufacturer, uses the facility to distribute automobile, truck and airplane tires to six states and Canada. The company pays an annual rent of $735,000 through the end of its initial lease term, which is Dec. 1, 2007, but has the option to take for another 10 years at $841, 110 annually, and then for another 15 years beyond that if it so chooses, according to the offering memorandum.
The Goodyear facility sits on nine acres at 800 Milwaukee Ave. in Algona, at the south end of the Kent Valley industrial area, considered the premier institutional market for industrial property in the Puget Sound. The building has a clear height of 28 feet, 19 truck doors, rail service and 2,000 sf of office space.
The sale price converts to $41.77 per sf. The capitalization rate figures out to about 8.85%. Part of the purchase price included a $5.98-million loan from Northwestern Mutual. The interest rate on the loan is 7.93%.
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