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DUPONT, WA-A 261-acre tract of land here overlooking Puget Sound has been acquired by a joint venture of First Industrial Realty Trust of Chicago and the California State Teachers Retirement System. Surrounding a golf course within 3,200-acre Northwest Landing master-planned community, the land can support as much as 3.6 million sf of development, one local source tells GlobeSt.com.
First Industrial provided little detail regarding the investment in its announcement Thursday and has not yet filed any information with the SEC about the investment. Local sources tell GlobeSt.com the purchase price was approximately $21 million and that the seller is the developer of Northwest Landing, Quadrant Homes, a unit of Weyerhaeuser Real Estate Co. Another $30 million or so is expected to be spent on infrastructure.
The land is zoned as a business and technology park. A First Industrial representative tells GlobeSt.com that the general plan is to obtain the necessary entitlements for development, install roads and utilities and then begin negotiating build-to-suit deals and individual land parcel sales. With entitlements expected to take at least a year and another year for infrastructure, vertical construction is at least 24 months out, sources tell GlobeSt.com.
Tom Pehl and Tom Abbott of CB Richard Ellis represented Quadrant in the transaction. Milt Reimers of CB Richard Ellis represented First Industrial.
First Industrial opened its first manned office in the Puget Sound early last year and shortly thereafter acquired a 45 acre parcel near Interstate 5 in Lacy, also with CalSTRS. Development plans call for 780,000 sf of development consisting of six distribution facilities ranging in size from 60,000 sf to 200,000 sf. Site clearing and grading took place in the fall. Vertical construction is slated to commence early this year.
In late 2005 and early 2006, First Industrial developed a 450,000-sf warehouse in Dupont as a build-to-suit for home furnishings and gift retailer Pier 1 Imports. The project was part of its Northwest Landing Business Park development. Dania and FedEx have since developed warehouses on adjacent parcels.
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