According to the Puget Sound Business Journal, in 2004, a large industrial property in South Seattle sold for $9.9 million. At the time some real estate agents felt the buyers overpaid as it would take too long to redevelop the land. Fast forward to last Thursday, May 21st, 2015, those same buyers sold the same lot for a whopping $24.5 million, as recorded by the King County.
The 13.6 acre land was purchased by Prologis, a global warehouse and industrial developer who plans to build two-story warehouses that will total 540,600 square feet.
Popular in areas that are tight on space, like in Asia and Europe, two-story warehouses used as distribution centers are very rare in the states. In fact the only one in the Puget Sound region is Amazon’s new facility in Kent.
Prologis see the demand for more warehouse space in Seattle and purchased two warehouses for $63.25 million earlier this year. Currently Uwajimaya and K2 Sports are leasing the warehouses at a record price of $158 per square foot.
All in all, “overpaying” for land at $9.9 million wasn’t too bad, considering its worth rose to 147% in just 11 years. Well played.