Industrial property

New York-based Fortress takes industrial property of Sumner for $25 million

By Vladimir Bosanac

Interest in industrial space in Puget Sound has been a constant in the region for the past two years, and investors around the world have sought to establish and expand their presence in the market. New York-based Fortress Investment Group is one such investor, and the company just expanded its industry footprint with an acquisition in Sumner, Washington. The company paid $25 million (about $147 per square foot) to acquire a 170,000 square foot property at 1901-2005 Fryar Avenue, according to public filings. The seller was The Wattles Company, based in Enumclaw.

The industrial property sits on a 6.63-acre site, according to the asset’s website on CommercialCafe. It is considered a Class B asset and was developed in 1950. The building also includes 76 parking spaces.

There is no indication at this time if the company plans to redevelop the property, but the company has recently expanded into the Puget Sound area. According to previous reports from The Registry, Fortress has been acquiring properties in the industrial and retail sectors for some time. In May 2021, the company spent $14.33 million to acquire the Macdonald Miller warehouse in Seattle located at 7707 and 7717 Detroit Ave. SW. In May of last year, Fortress purchased property at 2326 Airport Way S in Seattle for $12.8 million.

The company has also purchased retail assets in the region. In 2019, the company paid $17.3 million to acquire two CVS-anchored properties in Federal Way and Lakewood, as well as $11.3 million to acquire a Safeway property in Everett.

Fortress Investment Group describes itself as one of the world’s leading highly diversified investment managers with approximately $53.3 billion in assets under management as of December 31, 2021, according to the company’s website. The firm was founded in 1998 and manages assets on behalf of approximately 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and investment strategies. permanent capital.

The industrial market in the greater Puget Sound area has reached new heights, according to recent industry reports. Kidder Mathews reported record net absorption of just over 13 million square feet in 2021, with 4.1 million square feet in the 4th quarter alone. The previous yearly high was 6.8 million square feet in 2006. The market saw the region’s vacancy rate fall from 4.7% to 4.4% as absorption exceeded deliveries. This increased the average asking rental rate from $0.90/sqft/month to $1.05/sqft/month. Sales volume set a record in 2021 with $1.8 billion sold, eclipsing the previous record of $1.2 billion in 2019, Kidder Mathews said.