Friday, March 17, 2006

Rangar Warehouse in Tacoma, WA Sells for $63 Million

TheNewsTribune - March 14th, 2006

The $63 million sale of an industrial campus in Fife which was owned and is occupied by toy logistics company Rangar has set a new benchmark for the value of such property in Pierce County. The sale of the 968,000-square-foot Regal Logistics Center to by Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) set a local record of $65 per square foot. The previous mark was around $60 per square foot.

Eight institutional investors, primarily pension funds, bid for the property . “There are only a handful of industrial parks that size,” said Todd Clarke, senior vice president of GVA Kidder Mathews in Tacoma. “It’s a strong investment market. A quality market will get multiple offers.”

The winning bid was submitted TIAA-CREF which arranged a long-term agreement to lease the property back to Rangar, Clarke said. The $63 million figure “exceeded our underwriting expectations,” he said. “Buyers are willing to pay a premium. These opportunities are few and far between.”

“People want to be near the port,” said Port of Tacoma spokesman Mike Wasem. “People want to be near the fulcrum of trade and the transport of materials. “Transactions like this are a great indicator about how the port is a magnet for commerce. As trans-Pacific trade grows, we’re going to see more deals like this.”

The property is located between Interstate 5 and the Puyallup River, at 6500 26th St. E. in Fife. Clarke first sold the site to the developer OPUS, which constructed the original buildings and later sold the property to Rangar. Sphere: Related Content

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