EQT Exeter Pays $50M for Western Industrial Portfolio
EQT Exeter has acquired a 312,604-square-foot, three-building infill industrial portfolio in Seattle and Portland, Ore., for $49.9 million. Prologis sold the assets, public records show, with the assistance of CBRE.
Northwest Corporate Park Building 11 is the largest asset in the portfolio. Prologis had acquired the 207,082-square-foot distribution center in Portland for $26.5 million in 2018, CommercialEdge data shows.
The distribution center features 54 dock-high and 13 rail doors, four grade ramps and 27,971 square feet of office space, as well as an optional 7,300 square feet of showroom and 25,000 square feet of cooler space.
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Carrying the address 3601-3621 NW Yeon Ave., the last-mile facility is about 4 miles northwest of downtown Portland, while Portland International Airport operates some 14 miles northeast.
EQT also purchased two buildings in Greater Seattle, dubbed Kent 36 and 39. The former is a 63,500-square-foot distribution center and the latter a 42,022-square-foot shallow-bay industrial property.
Located at 7620 S. 192nd St. and 8041 S. 228th St. in Kent, Wash., the duo is roughly 3 miles from one another. The Seattle-Tacoma International Airport is less than 8 miles away and downtown Seattle is about 20 miles northwest.
CBRE Vice Chairman Brett Hartzell and Senior Vice President Cara Nolan, together with Executive Vice Presidents Paige Morgan, Andrew Stark and Stuart Skaug, represented Prologis.
EQT Exeter’s industrial expansion
Last July, EQT Exeter closed its Industrial Value Fund VI at $4.9 billion, exceeding its target of $4.0 billion. The investment vehicle recently financed the acquisition of about 5.1 million square feet throughout metro Minneapolis-St. Paul. Prologis was the seller in that deal as well and the industrial portfolio commanded more than $285 million.
Later that year, EQT launched EQT Exeter Real Estate Income Trust Inc. The REIT targets mainly investments in industrial and life science properties, with only 20 percent of its funds to be allocated for multifamily or self-storage assets.
Earlier this month, EQT Exeter REIT paid some $82 million for an Amazon-leased property also located in metro Seattle. Dermody Properties sold the last-mile asset.
Investors all in on Western industrial markets
As of August, Western industrial markets claimed eight of the top 10 national spots for per-square-foot prices, a CommercialEdge report shows. The Bay Area topped the charts with assets trading for $483 per square foot. Both Seattle and Portland made the list with $207 and $173 per square foot, respectively, ahead of the national average of $132 per square foot.
In terms of industrial transaction volume, Seattle and Portland witnessed $679 million and $252 million year-to-date through August, respectively, the same source shows. Once again, the Bay Area occupied the first position, with more than $2.7 billion in sales.
Should market conditions hold, the total industrial deal volume in 2024 is expected to overshadow last year’s, according to CommercialEdge. Moreover, 18 of the 120 markets already surpassed their 2023 volume in August. Denver—also a Western market—was one of them, with $818 million in industrial transactions during the first eight months of the year, as opposed to 2023’s total figure of $523 million.
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