Logistics Firm Leases 500,000-SF Spec Building

Scott Carter and Leslie Boudwin of Bellevue-based Pacific Real Estate Partners Inc. brokered the deal for the developers, a joint venture of Bellevue-based Knapp Development and St. Louis-based Michelson Commercial Realty & Development LLC. John Sullivan of CB Richard Ellis represented Norvanco. The brokers involved in the deal declined to confirm the negotiated lease rate; other sources tell GlobeSt.com it is in the low $0.30s per sf per month.

The majority owner of the 22-acre Summit property is Washington Capital Management Inc., a Seattle-based investment advisor for Taft-Hartley pension trusts in the Western US. Carter tells GlobeSt.com that the original plan was to spec the Summit Building at the time Washington Capital bought into the project about two years ago, however; by the time the deal closed and the site work was complete the market had gone down dramatically, so they pulled in their horns. Last fall, Washington Capital decided to move forward with the speculative development, betting that with several large users back in the market--and no other large modern spaces under construction--Carter and Boudwin would be able to land a tenant by the time construction was complete.

Washington Capital won that bet, and recently went all in. WCM director of equity real estate Cory Carlson tells GlobeSt.com he recently closed on the acquisition of the rest of the 150-acre property in partnership with Knapp and Michelson, who held the option, and has since brought Prudential Real Estate Investors to the table as well.

Minus roads, environmental set-asides and the Summit parcel, there are 114 acres of developable land remaining. Next up, says Carter, is one of two buildings planned buildings, the 405,000-sf Rainier Building and the 383,000-sf Baker Building, each of which have their own advantages.

The Baker Building is slated for the entrance to the development, and Carter says it would be nice to have that well under way by the time the new SR 167-24th Street Interchange opens, bringing exponentially more traffic by the site; however, the design phase for that project is just now finishing up, and it has not yet been submitted for permits. The Rainier Building, on the other hand, which is further into the park, has all but completed the permitting process, such that if a user came along in the near future and needed to have something up in six months, that would be the one to go up first, says Carter.

As for future competition, Carter says both Opus Northwest and Panattoni have properties in the area that could hold a large building, but just one, says Carter. "We can build multiple ones; that's where we think we have a real advantage," he says. "And we have a great layout for providing trailer parking, which is a real big issue for many users."