JV Partners on Four-Story Last-Mile Logistics Project in SoDo

Despite the strategic location of South of Downtown or SoDo, much of its existing stock of industrial space is dated and functionally obsolete. There is also very little institutional ownership in the area, creating opportunity for new product managed by an institutional quality operator.

Enter GTIS Partners and Ryan Companies US Inc., which have formed a joint venture to develop 65 S. Horton St., a four-story class-A last mile industrial/urban logistics property. Once complete, the building will span 126,646 square feet and is expected to cost around $42.5 million.

The site is located just one mile south of downtown, adjacent to several Port of Seattle terminals in a Qualified Opportunity Zone. SoDo is highly sought after for industrial development due to its access to both the urban core markets of Seattle and the Eastside, and the hub of bulk distribution facilities located farther south in Kent.

Rents have grown approximately 9 percent per year since 2013 across Seattle’s close-in submarket which includes SoDo as a result of the MSA’s strong population and economic growth combined with a lack of new industrial supply.