Steel Peak Expands Industrial Outdoor Storage Portfolio with Ninth West Coast Acquisition

Steel Peak, a commercial real estate investment firm focused on industrial outdoor storage properties, has acquired its ninth IOS property on the West Coast with the purchase of a facility at 1503 Thornton Ave SW in Pacific, Washington for $6.2 million. This transaction represents the company's second acquisition in the Seattle market this year, following its founding in January 2024, and demonstrates the firm's aggressive expansion strategy across Washington, California, and Utah.

Pasha Johnson, Steel Peak Co-Founder, emphasized the strategic importance of this acquisition, stating that the company is building a meaningful presence in the Seattle market with additional properties in the pipeline. Johnson noted that sites like 1503 Thornton Ave SW are irreplaceable assets that provide the functional yard and shop space that industrial service users desperately need but rarely find available in today's competitive market.

The property's strategic value is further highlighted by its immediate access to Highway 167 and proximity to the Ports of Seattle and Tacoma, making it an ideal location for logistics and industrial operations. The 2.40-acre property includes a 3,000-square-foot maintenance shop with 800 square feet of office space, featuring two 12-foot by 14-foot grade-level doors and more than two acres of excess graveled and partially paved yard space perfect for outdoor storage and contractor use.

Blake Rodgers, Steel Peak Principal, explained the market dynamics driving this acquisition, noting that demand from construction-related users, contractors, and equipment rental companies continues to outpace supply. Rodgers highlighted that very few sites offer the optimal balance of shop space and large, secure yard areas that modern industrial users require. The combination of rising infrastructure spending, limited new development, and high replacement costs ensures long-term rent growth for functional IOS assets, making properties like this particularly valuable investments.

The transaction was facilitated by Thad Mallory, SIOR, and Cam Warren of Newmark, who represented both Steel Peak and the private seller. The property's zoning allows for contractor yards, building material providers, equipment rental, and vehicle maintenance operations, providing flexibility for various industrial uses that support the region's growing infrastructure and construction sectors.

Steel Peak continues to actively seek IOS investment opportunities throughout the Western U.S. with capitalized values ranging from $3 million to $50 million, investing both directly and in partnership with institutional and high net-worth investors. This acquisition strategy reflects the firm's confidence in the long-term appreciation potential of well-located industrial outdoor storage properties that serve essential functions in the supply chain and construction ecosystems.