“This sale is bitter sweet. Although we are very pleased with our investment, generating a 27% IRR and a 2.71 equity multiplier over the 4.5-year hold, this project is extremely well located, and difficult, if not impossible, to replicate. The property should perform extremely well for the new owners,” said Rodney Richerson, regional vice president for KBS.
The multi-building property is one of the largest industrial parks in the area, allowing accommodation for a diverse set of tenants. The property offers varying leasing sizes and is equipped with onsite amenities such as a café, an outdoor patio and loading docks.
Located in the northern portion of the Eastside submarket, directly east of the SR-522 and within proximity to the I-405, The Park at Woodinville is situated along the region’s primary transportation corridors. The Woodinville community is known for its wineries and tasting rooms that have attracted a group of aspiring winemakers over the years.
According to Colliers International’s Q4 2018 U.S. Industrial Market Outlook Report, the market remains strong with historically high occupancy and rental rates. As demand for e-commerce grows and supply chains expand, the industrial real estate market continues to experience demand.
“The Park at Woodinville is a unique asset to the surrounding area, which reflects directly on the steady demand of leasing we’ve seen at the property,” said Clint Copulos, senior vice president for KBS and asset manager for the property. “We anticipate the property’s new owner will experience the same success that we historically have had in the market.”
Jason Bloom of Kidder Matthews represented the buyer and Derek Heed of Colliers International represented KBS in the transaction.