Panattoni, Crow Holdings Sell Seattle Asset
This is one of the largest core industrial transactions on the West Coast this year so far.
A newly built 753,069-square-foot Class A industrial facility, part of the FRED310 development in Greater Seattle, has changed hands in a deal arranged by Cushman & Wakefield. The deal is one of the largest core industrial building sales on the West Coast this year so far, according to the brokerage.
Panattoni Development and Crow Holdings Capital are the owners and developers of FRED310, a warehouse and distribution campus coming online in two phases on 310 acres in Frederickson, Wash.
Located on nearly 41 acres at 6921 192nd St. E., the 2024-completed Building D was fully leased at the time of sale. General Electric Appliances signed a lease for 435,791 square feet that started in October 2023, according to Yardi Research Data. Kowa, a Japanese research, development and manufacturing firm, leased the remainder of the building, about 317,000 square feet, and plans to move in later this year, according to Puget Sound Business Journal.
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The developers of Building D secured an $82.5 million construction loan from Pacific Coast Capital Partners in August 2023, according to Yardi research data. The building has a 40-foot clear height, 126 dock-high doors, four drive-in doors and a total of 488 parking spaces.
Jeff Chiate, Bryce Aberg, Jeffrey Cole, Charlie Jacobs and Matthew Leupold of Cushman & Wakefield’s National Industrial Advisory Group – West represented the seller. In addition, the firm’s Scott Alan and Patrick Mullin provided market advisory and lead marketing efforts for the project.
Investment sales across Seattle’s industrial market amounted to $402 million square feet year-to-date as of May, according to a Yardi Matrix report. Assets changed hands at an average of $214 per square foot, way above the national average of $133 per square foot. Los Angeles ranked first among the western markets (with $311 per square foot), followed by Orange County ($282 per square foot) and the Inland Empire ($249 per square foot).
FRED310 overview
Panattoni and Crow Holding Capital obtained $252.3 million in construction financing from PCCP in October 2023 for the development of three buildings totaling 2.2 million square feet at FRED310. Building E, which has 782,875 square feet, was a build-to-suit project for Harbor Freight Tools, which signed a lease in March 2023. Floor & Décor leased the second build-to-suit asset, the 1.1 million-square-foot Building C, in August 2022. The developers broke ground on Building E at the end of 2023.
Building D was one of two speculative buildings developed in the first phase. The second one, the 611,202-square-foot Building G, has 3,498 square feet of office space, a 40-foot clear height, 158 trailer parking spaces, 370 auto parking spaces, 106 dock-high doors and four drive-in doors.
Rising at the intersection of Canyon Road East and East 176th Street, FRED310’s Phase 1 will have approximately 3.3 million square feet at full build-out. When the second phase with two more buildings is completed, the campus is expected to have as much as 4 million square feet.
Overall, the buildings cater to distribution and manufacturing tenants. The project provides ample dock high and grade loading, 36-foot to 40-foot clear heights, abundant auto and trailer parking as well as large truck courts.
The rail-served development is about 14 miles from Port of Tacoma and 43 miles from Port of Seattle. The location is near multiple freeways, including Interstate 5, and about 28 miles from Seattle-Tacoma International Airport.
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