Kent Valley Industrial Portfolio

JLL Industrial Capital Markets is pleased to present the opportunity to acquire the fee-simple interest in the Kent Valley Industrial Portfolio, comprised of Southcenter West Business Park, Kent Valley DC III, and 22647 72nd Ave S. The Portfolio consists of five infill distribution facilities totaling 401,132 square feet. Situated in the Kent Valley, the Properties are strategically located between Tukwila and Kent, within Seattle’s prime industrial corridor. The Properties are ideally positioned in proximity to key transportation nodes serving the entire Pacific Northwest region such as I-5, I-405, West Valley Hwy, SR-167, Seattle-Tacoma International Airport, and the Port of Tacoma. The Portfolio is further benefited from proximity to the SR-167 highway extension which will deliver 6 new miles of highway and ultimately connect I-5 to SR-167 and up to West Valley Highway.

The Portfolio is currently 89% leased to sixteen (16) unique tenants, with a weighted average lease term of 2.8 years. Tenants benefit from 24’ clear heights and a variety of suite configurations, allowing for optimal tenant optionality and catering to a diverse range of user requirements. Southcenter West Business Park demonstrates strong tenant retention, a diversified rent roll, as well as recent leasing activity – with one of the largest tenants executing a recent long-term renewal. Kent Valley DC III and 22647 72nd Ave S further enhance the offering with highly desirable dock door-to-suite size ratios, LED lighting, and active leasing activity—evidenced by all tenants having signed a renewal or new lease within the last 14 months. Additionally, the Portfolio is surrounded by a highly skilled population base; within a 25-mile radius, the Properties have experienced a 21-22% increase since 2010.

The Kent Valley Industrial Portfolio presents a rare and extremely attractive opportunity to acquire a critical mass of five distribution facilities in Seattle’s premier industrial corridor which presents high barriers to entry and premier accessibility to major thoroughfares. The North and South Kent Valley locations of the properties facilitate seamless servicing to Seattle, the Eastside, and Tacoma. The Portfolio is anchored by high-profile corporate occupiers and a broad base, growing talent pool, with proven tenant demand drivers, and strong historical occupancy—all at a significant discount to replacement cost.