PCCP, Panattoni Form JV for Seattle Warehouse Construction
- Feb 15, 2018
PCCP LLC and Panattoni Development Co., are teaming up for their seventh speculative industrial development joint venture—construction of a 201,509-square-foot industrial warehouse building in the Riverside Business Park in Everett, Wash.
Glacier Peak will be built on a 10-acre site on Riverside Road, in the business park located near an Interstate 15 interchange and Boeing’s primary assembly plant at Paine Field Airport. The building will be a 32-foot, clear height, single-loaded, concrete tilt-up structure featuring multiple access points, 130-foot truck courts and ESFR fire suppression systems.
“This development presents another opportunity to partner with the best-in-class team at Panattoni,” Dorian Farhang, PCCP vice president, said in a prepared statement. “Panattoni is one of the most experienced developers in the Seattle industrial market and recognized a great opportunity to deliver Class A product to the healthy Everett area.”
The joint venture acquired the site from the Port of Everett. The purchase price and estimated cost of development were not released by the firms. Riverside Business Park was the site of a Weyerhaeuser lumber mill for more than 80 years until the Port of Everett bought the land in 1998 for redevelopment. The remainder of the Riverside Business Park includes a nearly complete warehouse build-to-suit for an aerospace-related company and a FedEx distribution facility.
As the main point of entry in the Pacific Northwest from the Asia-Pacific Rim and a key distribution center for the region, the Puget Sound “industrial market industrial market remains in great shape in the second half of 2017 and this is expected to continue into 2018,” notes Transwestern’s Seattle Industrial Market Real Estate Outlook Third Quarter 2017 report.
The report stated the average vacancy rate was 3.2 percent in the third quarter and net absorption was positive for the 30th consecutive quarter led by steady demand from the logistics sector and local manufacturers. Average rental rates were $8.04 per square foot, up 22 percent year over year.
“Average rental rates continued to set new record highs as vacancy levels remained historically low. With the average rental rate market-wide increasing over 20 percent year over year, it is no surprise that industrial development activity is now at its highest level since 2006,” the report stated.
Last week, Panattoni, one of the largest privately held, full-service development companies in the world, began construction on a new 1 million-square-foot warehouse for Cooper Tire at Gateway Global Logistics Center, its 1,600-acre master-planned industrial park in Marshall County, Miss. Panattoni is teaming with Mohr Capital on the build-to-suit facility in the suburban Memphis, Tenn., area.
Panattoni isn’t the only firm PCCP, a real estate finance and investment firm focused on CRE debt and equity investments, has partnered with recently on industrial assets. Last month, PCCP and Capital Partners, LLP, said they had acquired a seven-property, 1.2 million-square-foot industrial portfolio in the Minneapolis metro area.
Images courtesy of PCCP