November 8, 2018

210-acre logistics site sells for $46M

Rendering by Logistics Property Co. [enlarge]

LPC’s new Frederickson logistics center could have 2.5 million square feet, built in three phases.

The site for the planned LPC Frederickson One logistics center, at and around 2601 200th St. E. in Pierce County, has sold for about $45.8 million, according to county records.

The entire site totals at about 210 acres.

Forestry company Sierra Pacific Industries sold the largest piece for a little over $43.9 million. Sierra Pacific had owned the apparently unimproved land for decades.

There were also three related sales to the same buyer from three owners worth $1.8 million.

Not all details could be confirmed before deadline. Brokers were not announced.

The buyer was LPC Frederickson 1 LLC, which is associated with Logistics Property Co. of Chicago and its partner Macquarie Capital Real Estate Investments of New York.

The site is east of Spanaway and Highway 7, and west of Frederickson. The planned new buildings would be just west of separately developed industrial properties now leased by Whirlpool and Ikea.

LPC's new Frederickson project could have 2.5 million square feet, built in three phases. The architect is Craft, and the contractor is yet to be named — as are possible signed tenants.

The first building, with 478,000 square feet, will break ground in the spring. It will be built on spec, according to LPC.

Leasing the space are Scott Price of Neil Walter Co. and Mike Avila of Pacific Rim Real Estate Group.

LPC is a new logistics real estate platform that was formed last month by a dozen executives who came from Ridge, Opus West, DCT Industrial Trust (recently acquired by Prologis) and other companies.

In a press release last month, LPC said it was already managing properties in Dallas, Houston and Chicago, worth about $600 million. The company said it “anticipates closing on properties in Los Angeles, Seattle, Indianapolis and Pennsylvania this year, as part of a development pipeline of approximately 20 million square feet.”

LPC just broke ground near Kenosha, Wisconsin on what it calls 94 Logistics Park, which will have 1 million square feet.

LPC says it has offices in Atlanta, Dallas, Houston and Los Angeles, and plans to open offices in Philadelphia, Miami and Seattle. The firm is led by CEO James Martell, who said last month, “It is an exciting time for the U.S. industrial sector. The growth in e-commerce, increasing globalization of trade and supply chain reconfiguration are driving record tenant demand and rental growth. Together with our partners, we hope to provide state-of-the-art logistics facilities and best-in-class occupancy solutions for our tenants.”

Macquarie has over $15 billion in assets under management.