EQT Exeter Real Estate Income Trust, Inc. is back on the acquisition front by adding a Washington State industrial property for $81.5 million.
The building, located at 2871 S. 102nd Street in Tukwila, spans 202,464 square feet. The Class A property in South Seattle was completed in 2021 and is 100 percent occupied by an undisclosed multinational online retailer according to a statement by EQT Exeter. The last-mile asset also has an investment-grade credit rating.
The industrial site remains is nearby to the Port of Seattle, Seattle International Airport, and freeways including Interstate 5, which provides access from Vancouver, B.C. to Mexico.
Ali Houshmand, global head of non-traded REITs at EQT Exeter, highlighted Seatle’s fundamentals, as more than 200,000 workers are located within a 45-minute drive of the property, and four million total reside within an hour’s drive.
“South Seattle is a highly sought-after, low-supply infill market with limited developable industrial land, an aging building stock, and strong appetite for warehouse space,” said Houshmand.
“Rapid population growth and increasing e-commerce demand, as well as dynamic emerging industries make this property an ideal regional distribution location to the core of Seattle and surrounding region.”
The move by EQT Exeter only marks its fourth acquisition since its establishment. But it has been active recently. This summer, the company acquired two industrial properties, one in Pennsylvania, and the other in Tennessee for $245 million. Since its inception, EQT Exeter said it has invested more than $390 million. Keep in mind that Exeter and EQT combined to form a new company in 2021.
The combined firm manages $30 billion of equity and has properties in over 50 cities globally. It operates a range of assets including office, life sciences, industrial, and residential.
CBRE National Partners West brokered the deal for the seller, which was classified as an institution investor.
“This irreplaceable asset will undoubtedly over-achieve due to its incredible location and extremely functional design” Brett Hartzell, vice chairman at CBRE, said of EQT Exeter’s purchase.