Pacific Gulf Business Park in Tukwila and five other Seattle-area properties are involved in Pacific Gulf Properties’ sale of 72 industrial properties to CalWest Industrial Properties for $929 million.

The 475,629-sf, 27-building complex is the largest incubator/light industrial park in the south King County area. PGP real estate director Mike Sedwick was unavailable for comment on current tenants and vacancies.

The other local properties involved in the sale include the 64,077-sf Pacific Gulf Industrial Center and the 78,720-sf Pacific Gulf Airport 200, both in Seattle; the 200,401-sf and 266,305-sf Pacific Gulf Distribution Centers, both in Algona; and the 106,752-sf Pacific Gulf Renton Center currently under development in Renton.

The price of the overall sale – which includes 72 properties encompassing a total space of over 15 million leasable sf in California, Washington, Nevada, Arizona, and Oregon – includes cash value as well as the assumption of about $117 million of debt by CalWest – a joint venture between CalPERS, the California Public Employees Retirement System, and RREEF, a commercial real estate investment advisor.

Pacific Gulf plans to repay another $206 million of debt out of the sale proceeds and distribute the net proceeds of the sale to its shareholders. PGP will continue managing the industrial portfolio on behalf of CalWest for up to two years going forward, with the portfolio’s management team being folded up into a Taxable REIT Subsidiary.

The transaction has been approved by the board of directors of Pacific Gulf and the investment committees of CalPERS and RREEF, and is expected to close in the fall of 2000, subject to the approval of Pacific Gulf shareholders.

PGP is also currently in negotiation for the sale of their multifamily apartment portfolio which could fetch as high a price as $130 million. If all of Pacific’s industrial and multifamily properties are sold as per the company’s plan, they plan to make a cash distribution of up to $26 to shareholders in the fourth quarter.

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