Wilsonville Logistics Center is a class-B bulk distribution building that was constructed in 1986 and expanded in 1989. It totals 508,277 square feet located within the Wilsonville submarket of Portland.
Wilsonville is 100% leased with 10.3 years remaining on the lease term. The property is located within Wilsonville, which is the southernmost submarket within the Urban Growth Boundary, effectively providing strong barriers to entry due to lack of available developable land in the submarket.
The property is situated approximately 1-mile south of the I-5 freeway, 17 miles south of downtown Portland and 27 miles south of Portland International Airport (PDX), in a well-located, well-known industrial node with high availability of skilled labor in the surrounding areas.
This transaction represents the opportunity to maintain a strategic overweight to the industrial sector with a recession-resilient long term tenant at a strong NOI yield.
Portland is a target market for industrial investment. This acquisition will diversify GCREIT’s industrial exposure with entry into a new market.
As of July 2022, Portland was at an all-time low vacancy rate for industrial properties of 1.6% and has shown 8.1% year-over-year rent growth. Low vacancy in the submarket is expected to continue, driven by municipality restrictions on new supply.
Wilsonville and suburban submarkets outside of the city of Portland have become increasingly favored locations for tenants to locate their businesses, due to a more favorable tax environment.