276,000 SF Kent Valley Industrial Acquisition for Hill Raaum Pietromonaco
Hill Raaum Pietromonaco Investment Co. · Kent Valley, WA
Represented by Mike Hemphill, The Andover Company
- PropertyFormer AT&T building, about 276,000 SF on 30 acres
- Pre-lease110,000 SF to Trojan Lithographic, 15-year term
- Price$4.7 million
- Lease-up166,000 SF of vacant warehouse 100% leased within four months
Challenge
Kent Valley industrial vacancy was approaching 9%, a tough period for the market. Hill Raaum Pietromonaco Investment Company, a locally grown industrial developer and investor, wanted to add to its warehouse portfolio.
AT&T owned a large manufacturing and distribution building on 30 acres that had been on the market for five years without selling. It was highly specialized, with 60,000 SF of office and 66,000 SF of low-ceiling assembly space.
Strategy
Drawing on its relationships with industrial tenants, Andover brought Trojan Lithographic to the property to lease 110,000 SF of the assembly and office space on a 15-year term. That pre-leased the hardest space in the building.
With that lease in hand, the plan was for Hill Raaum Pietromonaco to buy with the 166,000 SF of 24' clear warehouse still vacant, because generic warehouse users would want it. The pre-lease also helped the buyer secure financing.
Results
Hill Raaum Pietromonaco bought the 276,000 SF project for $4.7 million, a very low price in a soft market, and Trojan Lithographic, another Andover client, completed its 110,000 SF lease.
The vacant 166,000 SF of warehouse was 100% leased within four months of closing and has stayed fully leased. The property became a highly profitable long-term asset for Hill Raaum Pietromonaco.
Related services
Adapted from The Andover Company's published case study. Represented by Mike Hemphill of The Andover Company. Ben Hemphill now works alongside Mike Hemphill.
