Why EQT Exeter Just Dropped $81.5 Million on an Amazon Warehouse – And What It Means for the Future!

EQT Exeter buys a massive Amazon-leased warehouse near Seattle for $81.5M, marking a major move in the high-demand industrial real estate market.

EQT Exeter Real Estate Income Trust, based in Radnor, has bought a 34-acre property near Seattle for $81.5 million. The property has an Amazon warehouse on it.

The warehouse is 202,464 square feet and located at 2871 S. 102nd St. in Tukwila, about 11 miles south of downtown Seattle. EQT Exeter paid $402.54 per square foot, which is almost double the average price in the Seattle area. The county valued the property at $80.9 million. The purchase was made through a Delaware-registered entity called EQRT 2871 102nd LP.

Ali Houshmand from EQT Exeter said in a statement, "South Seattle is a desirable area with limited industrial land available, older buildings, and high demand for warehouse space."

The seller was linked to Dermody Properties, an industrial developer based in Reno, Nevada. They didn't respond to requests for comment.

EQT Exeter took out a $109.6 million loan with State Farm, according to King County records.

EQT Exeter, part of Swedish investment firm EQT, has also been investing in other U.S. areas like Austin, Texas, and California’s Inland Empire. Earlier this year, they spent around $450 million on 24 buildings in the Minneapolis/St. Paul metro area.

In 2023, EQT Exeter closed a $4.9 billion fund to buy industrial properties across the U.S., hoping to take advantage of lower prices due to higher interest rates.

Brett Hartzell and Paige Morgan from CBRE represented the sellers in this Seattle deal.

The Amazon warehouse, called DWA2, was built in 2021 on what used to be a parking lot. Amazon rents the entire site, and a spokesperson said the sale won’t affect their operations.

In the Seattle area, industrial building sales have been strong. Sales in 2024 have already passed those from 2023. According to real estate firm Kidder Mathews, the average sales price in Seattle is $245 per square foot.