Dermody Properties Pays $62M for Seattle Cold Storage

8220 S. 212th St.

Dermody Properties has acquired a 446,850-square-foot cold storage facility in Kent, Wash., for $62 million, according to King County records. Olympic Steamship Co. sold the Class B property.

Located at 8220 S. 212th St., the property had been under the same ownership dating back to 1983, when the asset changed hands for $6.4 million, CommercialEdge data shows.

The industrial building was completed in 1970 and includes refrigerated storage, a mezzanine storage level and a two-level office component. Located on more than 14 acres the property features a truck court between 100 and 130 feet, 24-foot clear heights, 45 dock-high doors outfitted with levelers, 12 rail doors and a ramped door. The structure is connected to rail service operated by BNSF.

The industrial space is less than 1 mile from State Route 167 and within 4 miles of Interstate 5. Downtown Seattle is 18 miles northwest.

As of September, U.S. average rents for industrial space reached $6.35 per square foot. Rents across metro Seattle surpassed the national average, with rents averaging $9 per square foot, representing a 4.6 percent increase year-over-year, according to CommercialEdge data. New leases commanded a large premium: Those signed during the year ending in September averaged $11.23 per square foot, only exceeded by Orange County, the Bay Area and Los Angeles.

Dermody’s earlier deals

In June, Dermody closed its third industrial fund by raising $1.1 billion from investors. Dermody Properties Industrial Fund III L.P. surpassed its investment target and will focus on Class A logistic facilities nationwide.

In September, Dermody secured a new tenant for a 258,737-square-foot lease in Rialto, Calif. DGC Fulfillment inked the five-year, full-building lease to commence in December.