A Kirkland-based investment firm has cut a $76.5 million check for Gateway North Industrial Park in Tukwila, shifting control of a six-building industrial complex along the South King County corridor at a moment when buyers are getting picky about what they add to their portfolios.
The six buildings that make up Gateway North were constructed in 1990–91 and total roughly 266,500 rentable square feet, with occupancy hovering around 90%, according to JLL. The complex covers about 17.6 acres, based on listings from CommercialCafe.
The sale price and identity of the buyer were first reported by the Puget Sound Business Journal, which notes that the Kirkland-based firm paid $76.5 million for the complex and that the property last traded in 2005.
Market context
The Puget Sound industrial scene has shifted out of its pandemic-era sprint and into something closer to a jog. Vacancies are rising and rent growth has cooled, even as well-located properties still command attention. Some pockets of the region are seeing higher availability, but leased, close-in industrial parks remain on shopping lists for investors looking for reliable income, according to Lee & Associates.
Why buyers still pay up
Gateway North’s tenant roster, which JLL lists as including EdgeConneX, Vertiv, Otis and Carrier, paired with quick access to I‑5 and Seattle-Tacoma International Airport, gives the park an income profile that looks relatively sturdy even as the broader market resets. Those tenant and location fundamentals help explain why a Kirkland investor was willing to commit that kind of capital here, according to JLL.
The deal adds one more data point to a South King County industrial market that brokers and owners are watching closely as vacancy and rents search for a new equilibrium. How the new owner approaches lease renewals, potential capital improvements and any tenant turnover will offer early clues about what this trade ultimately signals for Tukwila’s industrial corridor.
