CBRE is pleased to announce the sale of Kinsman Logistics Center, a 108,698-square-foot (sq. ft.) leased industrial distribution property located in the north Wilsonville submarket in Oregon.
Dermody Properties, a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, purchased the property for $14.7 million. Dermody Properties was attracted to the logistics center for its overall functionality, generous truck courts, 30’ clear height, ESFR sprinklers and access to Portland’s freeway systems. I-5 is accessible five minutes away via the N. Wilsonville interchange and the area is considered one of Portland’s premier industrial distribution locations.
“Reproduction costs for distribution facilities are skyrocketing due to demand, limited land supply and the current construction and development cycle,” said Phillip Wood, Partner, Northwest Region for Dermody Properties. “We viewed this property as a value in light of the cost of new construction and the barriers to entry that are inherent to the Portland market.”
The fact that it is located in the Southwest submarket was also a factor. “Tualatin and Wilsonville are highly coveted by industrial users and both areas are experiencing rapid growth in warehouse rents”, said Wood. “It also afforded us the opportunity to grow our current industrial portfolio in Portland, which has locations in north and northeast Portland.”
The property is currently home to Aosom, LLC, a leading online retailer of home décor and other consumer products, who will continue to occupy the facility.
Andy Kangas, First Vice President with CBRE brokered the deal. “Dermody Properties made a great acquisition,” said Kangas. “The Southwest industrial submarket is on fire, and warehouse rents have really taken off in the last two years. Industrial real estate for large employers in this market is extremely limited. Vacancy is hovering at three percent, and the supply of industrial land is virtually non-existent. There is currently only one building large enough to accommodate a warehouse user that needs 100,000 sq. ft. in the Southwest submarket. It’s tight because the area tends to be more entrepreneurial and offers business owners the chance to work where they live.”
This recent acquisition by Dermody Properties continues the trend of capital chasing leased-industrial space in Portland. Notable deals include:
- Marine Drive Holdings to GW Portland LLC (Big Eddy Commerce Center) 153,387 sq. ft.
- Dermody Properties, Inc. to Colony Capital, Inc (Rivergate Logistics Center) 523,934 sq. ft.
- James Property Investments to Harsch Investment Properties (5/95 Business Center) 114,250 sq. ft.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
