A 76-acre business park near Westfield Southcenter mall was sold Tuesday for $202.8 million, a huge sum for an industrial park in the Puget Sound region.
But Segale Business Park isn't your typical business park, brokers said.
Consisting of 12 buildings, the 1.3 million-square-foot complex on the Green River is prized for its proximity to Seattle, as well as its stewardship by the Segale family, who built the first industrial building there in 1974.
The buyer was Clarion Partners, a New York-based real estate investment managers.
"Rarely has there been an opportunity to purchase a park of this quality at a location that really operates as a South Seattle property, not a Kent Valley property," said Ed Hogan at CBRE, which represented the Segale family.
The park, just east of Interstate 5 and south of Interstate 405, is 2 miles from Seattle-Tacoma International Airport and situated between the Port of Seattle and the Port of Tacoma, according to a marketing flier. The deal also included 4.4 acres of developable land on the riverfront.
The region's biggest previous transaction for an industrial park was in 2013, when Northwest Corporate Park in Kent was sold for $170 million, brokers said.
The Segale property also has a data center leased to CenturyLink and three office buildings, two of them leased to Seattle-based food-product supplier Continental Mills.
Those buildings "pushed the pricing higher than what a normal industrial park would," said Thad Mallory, a senior vice president at Kidder Mathews who was not involved in the deal.
Even so, the price reflects strong investor appetite for industrial real estate in the Puget Sound region, fed by a strong stable of employers, continuing population growth and the scarcity of land available for development.
"It goes to show this is one of the core markets in the world," Mallory said. "This is seen as a safe haven for investors."