162,000 SF Tukwila Industrial Building Sale for Nordstrom
Nordstrom · Tukwila, WA
Represented by Mike Hemphill, The Andover Company
- Property162,000 SF industrial building
- Pre-lease75,000 SF to United Furniture Warehouse, 10-year term
- BuyerHill Raaum Pietromonaco
- PriceMarket price
Challenge
Nordstrom consolidated its Northwest distribution facilities in Portland, Oregon, which left a 162,000 SF building in Tukwila classified as excess property. The goal was the highest possible value in a soft real estate market and a soft Seattle economy.
The building had no dock-high loading doors, little room for trucks to maneuver, and would be hard to convert to multi-tenant use. That left it with little appeal to institutional buyers.
Strategy
Andover set a price range Nordstrom could accept, then marketed the building to qualified buyers and to tenants at the same time. The aim was a pre-lease, because a tenant in place would raise the property's value.
Andover's knowledge of the Kent Valley market pointed to bulk retailers as the tenants most likely to want this building, so marketing focused there.
Results
Andover pre-leased 75,000 SF to United Furniture Warehouse on a 10-year lease, which made the building more attractive to buyers.
Andover then brought in Hill Raaum Pietromonaco, the most qualified buyer, who purchased the building at market price. Nordstrom was delighted with both the price and the timing.
Related services
More on the Tukwila industrial and office market.
Adapted from The Andover Company's published case study. Represented by Mike Hemphill of The Andover Company. Ben Hemphill now works alongside Mike Hemphill.
