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1/17/25
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BKM Capital Partners purchased SeaTac Industrial Park, a 129.7k sf industrial asset in SeaTac, WA, for $29 mil. ($224/sf). The property sits within one of the tightest and most sought-after industrial markets in the Seattle metro area.
SeaTac Industrial Park comprises three concrete tilt-up buildings with 18 units ranging from 1.9k sf to 32.5k sf, with office spaces comprising 16% of the total footprint. Located at 18802-19024 13th Place S, the property is 92% leased and offers 14- to 16-foot clear ceiling heights, 45 dock-high doors, and 34 grade-level doors. The facility’s unique cross-dock loading configuration, a rare feature for small-bay properties, further enhances its appeal to last-mile users and logistics tenants.
BKM plans to invest nearly $2 mil in capital improvements to elevate the property’s appeal and address deferred maintenance. The upgrades will include roofing, landscaping, HVAC systems, parking lot repairs, and updated signage. A key component of the plan involves converting the park’s largest unit from 32.5k sf into four smaller units between 6k sf and 16k sf, addressing the market demand for smaller spaces and achieving a rental rate premium.
BKM’s strategy includes rolling 95% of the existing tenancy to market rates, correcting a 19% rental rate deficiency. With staggered lease expirations averaging 20% of the net rentable area per year, the firm has a clear path to capturing rental growth while maintaining high occupancy.
“SeaTac Industrial Park is a rare gem, offering cross-dock functionality for small-bay users in a submarket where industrial properties of this caliber are both in high demand and in short supply,” commented Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “With a 42% discount to replacement cost, this acquisition is well-positioned to deliver significant upside for our investors.”
With a vacancy rate of just 5.3% in the 6 msf SeaTac submarket—compared to 6.2% in Kent Valley and 8.1% across the broader Seattle market—the area remains under immense supply pressure*. New construction is limited, with less than 400k sf in the pipeline, intensifying the supply-demand imbalance for small-bay industrial properties.
* CBRE 3rd quarter 2024
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