8g. Presentation

Sale of Two Surplus Parcels

Item No.                   8g-supp
Date of Meeting          November 8, 2022
Echo 4 South : Sale of 2 Surplus Parcels To
Insite Property Group
November 8, 2022

                   Action Requested
Request Commission authorization for the Executive
Director to take all necessary steps and execute all
documents for the sale of approximately two acres
of real property located in the City of SeaTac to
Insite Property Group, LLC.

2

     The Parcels are located at the intersection of South
204th Street and 28th Ave South, west of Internation al                    28
Boulevard.                                                            th
S 204th St
RW 34 R                                                                      Ave S
Airport


RW 34 R
N
Subject Parcels

                          Site History
Timeline
•   2007 Port purchased 12-acre mobile home park with noise funds from FAA.
•   2019 Port sold 10 of 12 acres to WSDOT for expansion of SR 509 (SW portion of Port’s property).
•   2020, 2021 Port issued temporary construction easement to Sound Transit on remainder (2 acres) and
entered negotiations for sale of 4,195 sf and two easements to Sound Transit for light rail expansion.
Remainder Property Description
•   Oddly shaped 2-acre property difficult to build and service due to two “takings” for
public Rights of Way.
•   Steeply sloped down to the West.
•   No street frontage, access limited to spur road (28th Ave S) from S 204th St.
Benefit of Surplussing the Remainder
•   City supports this outcome; likely buyer who owns adjacent property is seeking to
build a self-storage facility.
•   Sale proceeds will be credited back to SEA’s noise program for continued noise
mitigation efforts.
•   Current costs to mitigate noxious weeds, dumping, trespass, and encampments will
be eliminated.
•   Avigation easement will be reserved on any sale.

           Breakdown of Negotiated Sales Price
North Parcel                South Parcel
As is value                    = $1,480,000                 = $1,310,000
Less  Fee  Acquisition  to ($74,000)                   ($58,000)
Sound Transit
Less Guideway Easement to ($11,000)                  ($2000)
Sound Transit
Less Sewer Easement       ($14,000)                 ($36,000)
Less Damage to Remainder  ($70,000)                 ($62,000)
Adjusted Value             = $1,311,000               = $1,152,000
Total Sale Value              = $2,463,000
5

                    Appraised Values

•  As Is Value = $2,790,000
•  Less Combined Sound
Transit Fee & Easement
Area Value of 4,195 SF =
$327,000
•  Negotiated Sales Price of
86,087 SF = $2,463,000


¹ PoS Appraisal review letter July 6, 2022
D. Chudzik MAI, Kidder Mathews

                  Insite Self Storage
Founded in Torrance, California in 2019, Insite Property Group is a:
•   Vertically integrated self-storage developer, operator, and manager focused on leveraging
technology to deliver best performing assets across institutional and emerging markets.
•   IPG has developed similar facilities all over the United States, including facilities in Tacoma,
Seattle and Everett.
•   Insite is under contract to purchase the northern and adjacent lot and will be closing on that lot
in January, 2023.






7

               Echo 4 South Property Sale Recap

Request Commission authorization for the Executive
Director to take all necessary steps and execute all
documents for the sale of approximately two acres of real
property located in the City of SeaTac to Insite Property
Group, LLC.



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