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September 10, 2018

Prologis buys 10-acre Pepsi plant near Mount Baker Station for $65M

The Pepsi bottling plant on a 10-acre site at 2300 26th Ave. S. in the Rainier Valley has sold for $65 million, according to King County records.

The buyer was Bayview Walker LLC, which is associated with Prologis, the logistics giant.

The seller was Bottling Group LLC, now an arm of PepsiCo, which acquired prior owner Alpac Corp in 1993. Alpac, originally the Alaska Pacific Salmon Co., had owned the property since at least the 1950s. Pepsi Bottling Group was a separate entity until PepsiCo bought it in 2009.

Brokers were not announced. The deal was worth about $147 per square foot for the land.

It’s currently zoned up to 65 feet, though an upzone to 75 feet is anticipated.

Development of the property started in the 1950s, with five related buildings now on the site, which is just north of Lowe’s.

PepsiCo hasn’t announced any closure plans for the plant. It’s unknown how many people work at the bottling and distribution facility.

No new plans have been filed for the site, which is significant given Prologis’ interest in close-in logistics hubs that facilitate last-mile deliveries to urban customers.

Given the site’s proximity to Mount Baker Station, multifamily developers might have also relished the opportunity. In central Portland, for instance, a five-acre former Pepsi plant is being redeveloped for 335 apartments by Security Properties and a Chinese partner.

Publicly traded Prologis acquired DCT Industrial Trust in May for $8.4 billion. That gives the combined company about 20 million feet in the Puget Sound region.

It’s currently building Georgetown Crossroads, the nation’s first three-story logistics center, with over a half-million square feet, and also planning Emerald Gateway, with over 1.5 million square feet on the 62-acre former Associated Grocers site.

Prologis also inherited the 53-acre DCT Blair Logistics Center — a name that may change — now developed at the Port of Tacoma, among other projects.