By Kate Snyder
An industrial property has traded hands recently in Auburn. The building, a warehouse with some office space, was sold by an entity affiliated with Blackstone Real Estate for $58.5 million, or approximately $204 per square foot, according to King County public records. The buyer was an entity affiliated with KKR.
Located at 521 Eighth St. SW, the building totals 286,350 square feet. Out of that, King County records show, 260,450 square feet is warehouse space and 23,000 square feet is office uses. The asset was originally constructed in 1999.
KKR is a global investment firm that offers alternative asset management and capital markets and insurance solutions, according to information from the firm. Recently, the company announced its acquisition of a portfolio of 18 multifamily assets from a closed-ended fund sponsored by Quarterra Multifamily, a premier multifamily real estate development and operating company, for approximately $2.1 billion. The recently-built, Class A portfolio consists of over 5,200 units concentrated primarily in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey. The portfolio is a mix of mid-rise and high-rise buildings featuring convenient access to urban, metropolitan areas, high-quality construction, modern amenities and excellent energy, water and waste efficiency.
More recently, KKR announced earlier this month that it has acquired a portfolio of six Class A industrial logistics properties in major U.S. Gateway and Sunbelt markets for approximately $377 million. The six modern industrial properties possess an average vintage of 2014 and feature 35-foot average clear heights, and the portfolio is 100 percent leased. The assets are located in infill submarkets across several major markets, including Seattle, Atlanta, Philadelphia, New Jersey and the Bay Area.
“We are excited to purchase these six well positioned properties as we continue to grow our national portfolio of well-diversified, carefully selected industrial assets,” Ben Brudney, a Managing Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States, said in a news release. “We think high quality assets in infill locations near diverse demand drivers and accommodative labor forces will be increasingly difficult to reproduce in the coming years.”
