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First Industrial Adds 233,000-SF Portfolio

SEATTLE-The Chicago-based REIT pays $17.4 million for a three-property portfolio that is 100% leased.

By Brian K. Miller | Updated on August 13, 2008

SEATTLE-First Industrial Realty Trust has acquired a three-property, 233,000-sf industrial portfolio in the south-end cities of Renton and Kent from Donald A. Berg, a Philadelphia, PA-based lawyer and investor that owns about 2 million sf nationwide. The sale of the properties, which are 100% leased, marks Berg’s exit from the Seattle market.

The purchase price for the three class A distribution centers was $17.4 million, according to county property records. The recorded price does not include sale taxes, broker commissions or the penalty to pre-pay the loan on one of the properties. Andrew Harnish and Chris Spofford with Jones Lang LaSalle represented First Industrial in the transaction.

While the parties involved declined to reveal the cap rate on the deal, recent similar deals have traded in the mid-6% range, local industry experts tell GlobeSt.com. If that was the case for this deal, then the acquired portfolio’s NOI would be approximately $1.1 million. That works out to an average rent of around $0.40 per sf, which is just a couple of pennies shy of the current market rent, according to industry experts.

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