JLL Industrial Capital Markets, as exclusive advisor, is pleased to present the opportunity to acquire the fee-simple interest in 2600 West Commodore Way (the Property), a 58,281 square foot industrial building situated on a 1.61-acre parcel in Seattle, Washington, just minutes away from Fisherman’s Terminal, with unmatched access to Downtown. The Property is located in an infill, land-constrained area, and enjoys convenient access to the Port of Seattle and intermodal yards due to its strategic location in the Ballard Canal / Fisherman’s Terminal Submarket. 2600 West Commodore Way is 67% occupied by a diverse array of maritime tenants, including electric boat manufacturer, Zin Boats and marine supply tenant, Fisheries Supply Company. This investment opportunity offers investors in-place income while providing new ownership value-add upside by leasing the remaining vacant space. Through a minimal repositioning effort, a future owner can capitalize on the robust leasing fundamentals within this supply-constrained submarket.
- Near-Term value-add opportunity: With minimal repositioning effort, investors can take advantage of market momentum and quickly increase the Property’s value by leasing vacant spaces to market rents and rolling below-market tenants to market rents.
- Excellent location with convenient transportation: Located in the Ballard Canal/Fisherman’s Terminal submarket, the Property strategically sits close to Hwy 99, the major thoroughfare connecting the Property to Downtown Seattle, The Port of Seattle, and SeaTac International Airport. In addition, the Property is 4 miles west of I-5, the predominant north-south interstate highway on the West Coast.
- Attractive basis relative to replacement cost: The past cycle has established industrial real estate as a favored asset class. Land prices and construction material costs continue to rise, resulting in replacement costs nearing $350 per square foot. 2600 West Commodore Way presents an opportunity to acquire an asset well below replacement cost and implement a capital improvement plan in a shorter timeframe than ground-up development.
- Low vacancy and available space drive rental rates upward: As of Q2 2023 the Ballard Canal / Fisherman’s Terminal submarkets have experienced a low vacancy rate of 4.3% for warehouse and distribution space. With no planned or proposed construction throughout the submarket, increasing demand will continue to put positive pressure on rental rate.