The Pacific Northwest’s largest industrial property finally traded hands — and for quite a fee. The Northwest Corporate Park in Kent was acquired by an affiliate of New York-based private equity fund manager KTR Capital Partners. The deal cost the buyer a staggering $170 million, a price tag that makes the transaction the largest of its kind in the entire Northwest, and one of the reference points of the West Coast real estate market in 2013.
The industrial asset is located on a 125-acre site in Kent, and offers 2.8 million square feet of space, divided among 19 buildings. The wide variety of building heights and features was clearly a big selling point, with the park offering clear heights between 22 and 30 feet, excellent access, freeway visibility and generous parking accommodations. It also features active BNSF rail service, thereby offering access to the country’s second-largest freight-railroad network. The property’s vacancy rate at the time of the transaction stood at 20 percent.
According to KTR Senior Vice President of Investments Phil Prassas, the purchase of Northwest Corporate Park “was a rare opportunity to acquire a well-established business park in the heart of the highly desirable Kent Valley submarket.” The official added that acquiring the property at an attractive basis below replacement cost factored in highly in the purchase decision.