Sagard Real Estate Acquires 133,750-SF Industrial Property in Tukwila, Washington

Sagard Real Estate has acquired 1100 Andover Park West, a 133,750-square-foot industrial property in Tukwila, Washington, expanding the firm's footprint in the greater Seattle industrial market, the company announced Sept. 9.

The fully leased facility sits on approximately 5.6 acres at the northern end of the Kent Valley, one of the Puget Sound region's most established infill industrial corridors. Its single tenant, a national wholesale distributor, has operated at the site for more than 25 years.

Property Specifications and Location

The building at 1100 Andover Park West features 24-foot clear heights, 16 dock-high loading doors, and four points of ingress and egress. The configuration is designed to serve a range of warehouse, distribution, and industrial users.

The Tukwila location provides direct access to Interstate 5, Interstate 405, and State Route 167, as well as Seattle-Tacoma International Airport and the Port of Seattle — infrastructure connections that make the submarket a consistent target for regional and last-mile distribution tenants.

"1100 Andover Park West is a prime example of the functional, well-located properties we continue to target in infill industrial markets," said Tom Stover, Managing Director, Acquisitions at Sagard Real Estate. "Tukwila offers excellent connectivity across the greater Seattle region, while limited opportunities for new development support the long-term value of existing industrial space. The building's flexible configuration provides additional optionality as user requirements evolve."

Deal Context and Submarket Pricing

A nearby five-building portfolio in Kent and Tukwila — including three buildings in Southcenter West Business Park on the 1100 block of Andover Park West — traded in mid-2026 for $85.7 million across 413,840 square feet, or approximately $207 per square foot. That same portfolio had sold in 2015 for $30.2 million, reflecting nearly a decade of appreciation in the corridor.

The building's 24-foot clear heights and dock-heavy loading configuration are competitive for mid-bay distribution, though they fall below the 32-to-40-foot clear heights now standard in newly delivered big-box industrial inventory. The fully leased, single-tenant structure provides near-term income stability, while the four-point access configuration and flexible floor plan give the firm future options for multi-tenanting or repositioning if the current tenant eventually vacates.

Seattle Industrial Market Conditions

The acquisition comes as the Puget Sound industrial market is navigating its highest vacancy levels in more than a decade. Regional industrial vacancy reached approximately 9.7 percent in the first quarter of 2026, up from 7.9 percent in the same period a year earlier, with roughly 32.3 million square feet vacant across nearly 3,800 buildings. By the second quarter of 2026, vacancy stood at approximately 9.5 percent regionally, with net absorption turning negative at around negative 1.2 million square feet.

The Kent Valley submarket, the largest industrial submarket in the region with approximately 48.9 million square feet of inventory, has tracked closely with broader regional trends. Vacancy in Kent Valley stood near 9.7 percent in the first quarter of 2026 and rose to between 10.2 and 10.4 percent by the second quarter — levels described as record highs for the submarket.

Despite the elevated vacancy environment, infill sites with constrained new development pipelines — driven by land scarcity and zoning pressure — have retained relative pricing power and lease-up advantage compared to more peripheral submarkets. Sagard's acquisition of a fully occupied, long-tenured asset in this corridor reflects an investor preference for stabilized, airport- and port-proximate product during the current market transition.

About Sagard Real Estate

Sagard Real Estate is a real estate investment advisor and operator with $6.1 billion in assets under management. The firm offers commercial real estate investment strategies through separate accounts and commingled funds, with capabilities spanning acquisitions, portfolio management, asset management, development, and property management. Founded in 1997 and headquartered in Denver, the firm maintains regional investment offices in New York City, Charlotte, Austin, Los Angeles, and the San Francisco metro area.

Sagard Real Estate is a subsidiary of Sagard, a global multi-strategy alternative asset management firm with more than $46 billion in assets under management across venture capital, private equity, private credit, and real estate, on a pro forma basis as of March 31, 2026.

Sources

Sagard Real Estate — Official Announcement, Sept. 9, 2026