Dalfen Industrial, one of the largest buyers of industrial real estate in the United States, has purchased a unique industrial property at 214 21st Street SE in Auburn, Washington, for $5,225,000. The seller was a private owner, represented by Kidder Mathews Executive Vice President Matt McLennan, SIOR, CCIM.
The property is a unique blend of office, industrial warehouse, and outside storage yard space — a combination that is difficult to find in the Kent Valley, one of the Puget Sound region’s top industrial markets. It consists of 26,920 rentable square feet on 2.15 acres of land.
The in-place tenant has three remaining years on the lease at a rate 58% below market. Given increased interest rates and a lack of lending availability, the current commercial lending market can be a challenge to navigate.
“Demand for well-located strategic industrial properties continues to be robust,” said McLennan. “Lack of available inventory coupled with today’s difficult investment environment makes these types of deals hard to come by. The seller’s willingness to finance the transaction overcame the challenges we faced.”
McLennan will continue as the leasing agent for this property.