Principal Global Investors Buys 824 KSF Logistics Asset

Pacific Summit Logistics Center. Image courtesy of Cushman & Wakefield

Pacific Industrial has sold Pacific Summit Logistics Center, its recently completed 824,320-square-foot industrial facility at 885 N. John Cannon Drive in Salt Lake City to Principal Global Investors.

A Cushman & Wakefield team represented the seller, and will continue to provide leasing brokerage services for the new landlords.

Completed earlier this year, Pacific Summit Logistics Center was built under the ownership of Pacific Industrial. Construction was subject to a $60 million loan provided by Citizens Financial Group, CommercialEdge information shows.

Neil Mishurda, co-founder of Pacific Industrial, said in prepared remarks that the facility was designed to appeal to the increasingly large distribution users in the Salt Lake market, and that this long-term approach has resulted in quality projects that attract high-caliber tenants.

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Half of the property is preleased to Quality Distribution, which intends to use the building as a warehousing and distribution facility. The asset features a host of industry-leading features such as 40-foot clear heights, 200 trailer parking stalls, mechanical loading doors and a vehicle-accessible perimeter road. The facility is located 2 miles north of the Lincoln Highway, with access to numerous interstate shipping routes. Salt Lake City International Airport is 3 miles east of the building and downtown Salt Lake City is within 6 miles.

The Cushman & Wakefield team representing Pacific Industrial was led by Executive Vice Chairman Jeffrey Chiate, Vice Chairman Richard Ellison, Director Michael Adey, Associates Bradley Brandenburg, and Matthew Leupold of the firm’s National Industrial Advisory Group, in addition Executive Director Thomas Freeman and Executive Managing Director Travis Healey out of the firm’s Salt Lake City office. Freeman and Healey will continue to serve as leasing agents for the property.

Salt Lake City’s Industrial Strength

The sale of Pacific Summit Logistics Center, the largest of a single building in the city’s history, is emblematic of the area’s strong industrial construction, leasing and occupancy numbers. The property is strategically located at the intersection of numerous interstate trucking corridors.

According to data from a third quarter 2022 report from JLL, the city has 11.6 million square feet of space in its pipeline, with a net absorption of 6.9 million square feet year-to-date and a vacancy rate of 3.4 percent.

Other recent Salt Lake City deals include ViaWest Group and Clarion Partners’ acquisition of 25 acres for the construction of 340,000 square feet of industrial space, as well as Medline’s relocation to a 710,000-square-foot distribution center.