Gateway North & Park 234

JLL Industrial Capital Markets is pleased to present the opportunity to acquire the fee-simple interest in the Seattle 2 Pack, comprised of Gateway North and Park 234, individually the “Project” or “Park”, and collectively the “Properties” or “Portfolio”. The Properties are comprised of 10 infill Class B distribution buildings totaling 518,156 square feet. Situated in the Kent Valley, the Properties are strategically located in proximity to key transportation nodes that serve the entire Pacific Northwest region such as Interstate 5 (I-5), State Route 167 (SR-167), the Seattle-Tacoma International Airport (SEA), and the Port of Tacoma.

Gateway North, located in Tukwila, is comprised of 6 buildings built between 1990-1991. The Project features 18’ – 22’ clear heights, 73 dock doors, and 42 grade level doors. Currently 90% leased to seventeen (17) tenants with a weighted average lease term of 1.8 years* the Project features a premium tenant base serving primarily data center and technology users with a 94% 10-year average historical occupancy rate. Gateway North features notable tenants with investment grade credit including EdgeConneX Holdings / EQT (NASDAQ: EQT, S&P: A-), Vertiv Corporation (NASDAQ: VRT, S&P Global: BBB-), Otis Elevator (NASDAQ: OTIS, S&P Global: BBB), and Carrier Corporation (NASDAQ: CARR, S&P: BBB+). EdgeConneX Holdings is the second largest tenant within the Seattle 2 Pack, occupying 10% of the Portfolio. Additionally, the Project benefits from its shallow bay status and premium location in the Tukwila submarket just over 1 mile from I-5 and 5 miles from SEA. The submarket is well positioned with zero proposed developments and limited product under construction, creating an environment with limited competition of the available supply and strong tenant demand fundamentals. Gateway North benefits from proximity to a highly skilled population with over 71% of the employee base in a 10-mile radius of the Project employed in white collar roles and 14% employed in blue collar roles.

Park 234, located in Kent, is comprised of 4 buildings built in 1988. The Park features 16’ - 22’6” clear heights, 67 dock doors, and 24 grade level doors, and 110’ - 120’ truck courts. Currently 100% leased to eleven (11) tenants with a weighted average lease term of 2.9 years*, the Park has maintained an impressive 96% average occupancy rate over the past decade. Strategically positioned less than 3 miles from both I-5 (2.5 miles) and SR-167 (1.9 miles), Park 234 sits halfway between the Port of Seattle and Port of Tacoma, providing premier access to major transportation networks. The Park features a high-profile tenant base including Kia Motors (NASDAQ: KRX, S&P Global: A-) and offers optimal suite configurations with an average size of 19K SF. Park 234 also benefits from significant infrastructure improvements with the ongoing SR-167 extension project, which will add 6 new miles of highway enhancing connectivity to the Port of Tacoma by 2030. The Park’s fully leased status and short-term weighted average lease term present immediate upside potential with a significant mark-to-market opportunity.

Collectively, the Portfolio presents investors with the rare opportunity to acquire a critical mass of institutional-quality, shallow bay distribution facilities in Seattle’s largest and best performing submarket with high barriers to entry, premier accessibility and connectivity to major thoroughfares, and high-profile corporate occupiers. The Portfolio offers an attractive and diverse range of suite sizes with near-term upside through lease-up of the existing vacancy, as well as the opportunity to mark rents to market within 3 years upon tenant rollover, all at a significant discount to replacement cost.