Located at 5000 N. Basin Ave., the building is 100% leased to four tenants: Rose City Moving and Storage, Carpet Services, Automotive Electrical Distributors and Harris-Truax. Most of the tenants have been in the building for several years.
J.D. Watumull tells GlobeSt.com the risk is that some of the leases are expiring in the next year or so and still need to be renewed. Todd Collins of Macadam Forbes Inc. handled both sides of the transaction. The management assignment has been handed to the locally based real estate services firm Norris & Stevens.
The county estimates the property's market value at just over $12 million. At the $11 million purchase price, rents would need to average about $0.27 per sf per month for Watumull to recoup his investment over 10 years, which is in line with current market conditions should any of those renewals not occur.
Local brokers familiar with the transaction tell GlobeSt.com Watumull acquired the property after selling another building on Swan Island to the owners of the tile company Cronin Co., which will occupy the vacant front half of the building while the new owners continue leasing the back warehouse to Freightliner. That property reportedly sold for $7.5 million, which Watumull used to acquire his new investment.
Watumull Properties owns two other industrial buildings on Swan Island, a 95,200-sf building leased to Northwest Paper Box and a 20,000-sf building leased to Office Depot. In the metro area, the company owns some two million sf of office, retail and industrial space. "We just showed up in 1990 and bought a little real estate," says Watumull. "It's similar in size to Honolulu."
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