CRG Sells Seattle Industrial Park for $221 Million
Duke Realty Acquired The Cubes at DuPont, a 1.6 Million Square Foot Industrial Park
SEATTLE – CRG, the national real estate development and investment firm, formally announced the $221-million sale of The Cubes at DuPont — a 1.6 million-square-foot industrial park located in DuPont, Washington — to Duke Realty. CRG developed the project in 2018 as a joint venture partnership with U.S. Logistics Fund I (USLF I), the firm’s national build-to-core industrial fund vehicle.
The Cubes at DuPont industrial park includes three buildings: a 747,488-square-foot speculative warehouse that was fully leased to Kimberly-Clark in 2019, a redeveloped 340,000-square-foot building which underwent extensive capital improvements, and a 494,900-square-foot speculative warehouse available for immediate occupancy. The sale to Duke closed on Dec. 28, 2020 and was brokered by CBRE National Partners, led by Brett Hartzell and Darla Longo. Wilma Warshak, SIOR, of Washington Real Estate Advisors was CRG’s listing agent on the site.
As a redevelopment of the former Intel Campus at the DuPont Corporate Center at 2800 Center Drive, The Cubes at DuPont required demolition of 600,000 square feet of office once Intel vacated the campus. The strategic location meets today’s enhanced logistics needs with immediate proximity to I-5 and travel times of less than 20 minutes to the port of Tacoma, one hour to Seattle and two hours to Portland, Oregon.
“The redevelopment of the former Intel corporate campus into The Cubes at DuPont was a perfect challenge and investment opportunity for CRG,” said Shawn Clark, president at CRG. “Our development and fund management acumen, combined with our ability to leverage Clayco’s integrated platform for design, construction and self-perform concrete, led to a highly successful project. We are committed to the Seattle area’s industrial market and see opportunity to provide sophisticated e-commerce tenants with a modern supply of logistics assets near some of the nation’s busiest ports.”
The sale is the fourth recent industrial asset disposition for CRG, which sold The Cubes at NorthPark in St. Louis on Nov. 23; a 1,002,150-square-foot e-commerce warehouse near Atlanta at The Cubes at Bridgeport on Sept. 25; and a 350,000-square-foot warehouse at The Cubes at Troutdale in Portland, Oregon on July 17.
“This sale validates several key trends that shaped our investment strategy for Seattle, and we’re seeing those play out in markets across the country,” said Kevin Newell, vice president and head of capital markets for CRG. “Tenants are demanding larger distribution centers to maximize their operational efficiencies. They’re wanting more parking to serve these facilities, and they’re open to leasing sites a little further out from the central core when they have a mix of great access, design and competitive pricing. Investors are seeing the same trends, and they’re increasingly following tenant demand to projects like The Cubes at DuPont.”
The Cubes at Dupont is part of CRG’s national industrial brand, The Cubes, which features more than 30 current and planned industrial developments in key logistics markets across the United States. These buildings are built with next-generation requirements in locations with favorable market dynamics, intermodal access and strong local workforces.
“This project was a win for the tenants, the community and our capital partners, and it speaks to the strength of our entire team and CRG and Clayco’s vertically integrated platform,” said Chris McKee, chief development officer at CRG. “We build next-generation industrial facilities based on the requirements of the most active logistics users in today’s market, and we’re doing it all over the country. We expect that the Puget Sound Region will continue to be essential for our national development strategy.”
CRG is a privately held real estate development firm that has developed more than 9,000 acres of land and delivered over 200 million square feet of commercial, industrial, institutional and multifamily assets exceeding $12 billion in value. CRG leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Columbus, Southern California, St. Louis and Philadelphia. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next generation users led to the creation of its industrial brand, The Cubes, and its multifamily brand, Chapter. For more information, visit CRG’s website at www.realcrg.com.
About The Cubes
The Cubes is a North American industrial brand owned and developed by CRG. The Cubes represents CRG’s philosophy of developing for the future and anticipating the enhanced needs of tomorrow’s modern industrial user. The Cubes are designed with an emphasis on sustainability, and implement state-of-the-art specifications, including maximum clear heights, dock doors and trailer storage to keep pace with the shift to consumer-centric logistic strategies. The Cubes are located on strategic sites that take into consideration both logistics and labor supply, always with the end user in mind.
About Duke Realty
On a nationwide basis, Duke Realty owns, maintains an interest in or has under development approximately 159 million rentable square feet of industrial assets in 20 major U.S. logistics markets. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is a member of the S&P 500. More information about Duke Realty is available at dukerealty.com. Duke Realty also can be followed on Twitter, LinkedIn, Facebook and YouTube.