Terreno Picks Up Seattle Industrial Asset

The new owner plans to renovate the 235,000-square-foot warehouse. The building, which is 65 percent leased, is situated next to Union Pacific Railroad’s intermodal facility.

4786 First Ave. South in Seattle
4786 First Ave. South in Seattle

Terreno Realty Corp. has purchased a 235,000-square-foot industrial property in southern Seattle from a group of private investors. According to public records, the building was acquired for $34 million. The stabilized cap rate of the asset is an estimated 5.1 percent. The new owner anticipates the total cost of the transaction—including future renovations, closing costs, due diligence, leasing costs and marking assumed debt to market—to be approximately $42 million.

Located at 4786 First Ave. South, the property is situated next to an entrance of Union Pacific Railroad’s intermodal facility. The asset additionally sits within a mile and a half of Interstate 5, enabling access to downtown Seattle, four miles to the north.

The building was 65 percent leased to three tenants at the time of the sale, including a Sears and Custom Delivery. The property features 29 loading docks and two drive-in doors, along with 71 parking spaces. Sears will vacate their part of the structure in the near future, per a lease termination agreement recorded with King County.

Image via Google Maps