GS Venture Partners of Bellevue on Tuesday said it is starting development of a $100 million business park in Arlington that could have 1 million square feet of space for aerospace and other manufacturing companies.
GS Managing Partner Chris Gayte last month paid $4.2 million for the 54-acre former site of Northwest Hardwoods and the Weyerhaeuser log mill at 20015 67th Ave N.E., according to public records. Gayte said work will begin within two weeks to demolish existing buildings and clean up the property to make way for the Gayteway Business Park, an 11-building project. He expects the demolition and cleanup work to take three to four months.
This business park is the largest project to date for Gayte, a builder of high-end homes mostly in Bellevue. He builds homes under a separate company, Gayteway Custom Homes.
Forty people worked at the Northwest Hardwoods sawmill when it closed in 2012. The number of people who could one day work at Gayteway is much higher.
"Development of the vacant 54-acre site will create as many as 2,000 family-wage jobs in Arlington," Arlington Mayor Barbara Tolbert said in a press release.
Arlington will face competition from other cities north of Everett for these jobs. Marysville, which is between Everett and Arlington, has more than 1,000 acres of under-used industrial land.
In addition, a new report from commercial real estate company Kidder Mathews states that while Snohomish County's industrial market rebounded last quarter, the growth was in the south county area. Meanwhile, vacancy rates in the north end of the county remain high, according to Kidder.
The city and Gayte are hoping that Boeing (NYSE: BA) and other aerospace companies look 28 miles north of Paine Field in Everett to the Gayteway Business Park whose buildings will range in size from around 41,000 to 200,000 square feet.
If companies are looking to expand into larger buildings, they will have trouble finding that with what currently exists in the market, said Gayte, who plans to build the buildings as they are leased out. He said even though it's early in the development process, he has "multiple tenants" who are interested in leasing space.
He declined to say who his partners on on the project are, and added that GS Venture Partners will fund the development with a bank. "We have the ability to fund it," Gayte said.
Gayte bought the 54 acres from his longtime business partners, Jim Rose and Mick Schreck of Trinity Partnership of Seattle. Rose and Schrek own the former Bayliner Boat plant property near the Gayteway Business Park.
For the full story, go to Puget Sound Business Journal.
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