Courtesy of CBRE

Tacoma Gateway II, a new 274,000-square-foot industrial development in Tacoma, has been sold to Realterm, CBRE announced in a news release today.

Terms were not released.

Citing Pierce County records, The Daily Journal of Commerce reported the sale at $87 million.

The property was completed in July and is fully leased to Unis LLC, a third-party logistics company, CBRE said.

The seller, a partnership between Panattoni Development Co. and a private real estate fund advised by Crow Holdings Capital, was represented by Brett Hartzell of CBRE’s National Partners Group, and Shawn Childs and Monte Decker in CBRE’s Tacoma and Seattle offices.

“Tacoma Gateway II’s record pricing is well-deserved,” Hartzell, executive vice president at CBRE, said in the release. “Panattoni and Crow Holdings Capital saw where the market was headed and developed a project that anticipated the needs of future industrial users. Demand for trailer parking has grown exponentially in the past two years, yet sites with vast yard space like this are extremely rare in the Puget Sound region.”

Located at 12005 Steele St. South, Tacoma Gateway II is a Class A distribution building with dock-high and grade-level loading, 36-foot clear heights, and more than 200 trailer parking stalls on an adjacent 4.77-acre yard. The site has immediate access to Interstate 5 and State Route 512 and also is located near the Port of Tacoma, the release said.

The combination of strong tenant demand and limited land available for new development has tightened the Puget Sound industrial market in recent quarters, CBRE said. Vacancy dropped to 5.5 percent while average asking lease rates climbed to 91 cents in the third quarter of 2021, according to CBRE research. Much of the new construction has migrated south in search of land and cheaper prices, attracting the attention of tenants. The Tacoma/Fife submarket led all Puget Sound submarkets in quarterly net absorption, recording 2.2 million square feet of positive net absorption in the third quarter alone, the release said.