BearRock Investments LLC
3317 Industrial Campus
3317 3rd Avenue S. Seattle, Washington
10 Year Hold
Active
Purchased the distressed project in a federally designated Opportunity Zone, thereby shielding initial equity from capital gains tax. BearRock Investments leased two of three buildings to Dowbuilt Construction prior to acquisition of the project and are planning a ~55,000 SF building on the campus' vacant lot.
Project Type | Source | Size | Acquisition Price | Sale Price |
|---|---|---|---|---|
Industrial/Office | Industry relationships, on the market | 74,000 square feet in three buildings, plus 22,000 square foot vacant lot | $12,550,000 | Not yet sold |
The property is in a federally designated "Opportunity Zone". The designation allowed the partnership to purchase the project all cash (no debt) while deferring capital gains on all invested equity. The partnership's plan is to hold the project for ten years, at which points no capital gains tax will be due on sale.
Prior to the purchase, the partnership leased the two 1900's era industrial buildings and the vacant lot to local, high-end residential construction company, Dowbuilt Construction, bringing the project 90% leased. Dowbuilt and the ownership have made substantial improvements to the historic industrial structures converting them to modern buildings with a beautiful interior courtyard between the two buildings. The ownership has a new building in design and permitting for the vacant land which will add another ~55,000 square feet of industrial/manufacturing space to the existing 74,000 square foot campus.
