A huge boxy Bellevue warehouse has sold for nearly $25 million — a sign that the industrial arm of the real estate market is hot and investors have eyes on the Omaha area.
So says Alex Epstein of OMNE Partners, who helped in the sale of the 370,000-square-foot distribution center that houses a Blue Buffalo pet food operation.
The tenant won't change because of the transaction. But Blue Buffalo now will pay rent to new owner Stag Industrial, a publicly-traded real estate investment trust based in Boston.
Stag bought the property at 10601 S. 15th St. from Austin-based AIC Ventures.
Epstein called the deal one of the decade's highest-dollar transactions in the local industrial market. The facility was expanded around 2017 after a late 1990s construction. It sold after the expansion for $19.4 million, Epstein said, and about four years later sold at the higher price of $24.4 million.
That the buyer was willing to pay such an "aggressive" price, even as some other areas of the economy have slowed during the pandemic, shows the strength of the local industrial warehouse market, Epstein said.
He said the deal also reinforces the lure of Omaha to investors.
“It's good to see that kind of appetite for an asset in the Omaha area," said Epstein. "There are national buyers looking at industrial in the Omaha area — that wasn’t always the case."