Target Information

New Mill Capital LLC, based in California, has acquired the former Kaiser-Mead smelter facility in north Spokane for $1.5 million. This sprawling 183-acre site includes 262 buildings, with plans to rehabilitate several structures into usable industrial spaces for new tenants. The company aims to demolish some remaining buildings, particularly those housing aluminum potlines, to make way for modern industrial developments.

Industry Overview in Spokane

Spokane’s industrial landscape has seen varied dynamics over the years, especially after the closure of significant manufacturing operations like the Kaiser plant in 2000, which formerly employed around 1,200 workers. Despite this reduction in available industrial job opportunities, the demand for industrial space in Spokane remains robust. The community is experiencing an uptick in interest from businesses seeking to establish operations in locations with existing infrastructure.

The local industrial sector benefits from Spokane's strategic location near major transportation routes, including a nearby north-south freeway. Additionally, the presence of power and water utilities enhances the attractiveness of industrial properties in the region. As a result, there is increasing pressure to develop these spaces to accommodate growing industrial demands.

As industrial zoning becomes increasingly scarce in Spokane, the Kaiser property represents a prime opportunity for redevelopment into an industrial park. The potential for job creation associated with revitalizing this site further underscores its importance to the local economy.

Rationale Behind the Deal

The acquisition of the Kaiser site aligns with New Mill's strategic focus on transforming abandoned industrial spaces into functional business parks. The company sees significant potential in this location due to the existing infrastructure, which offers immediate resources for new tenants. Moreover, the company has identified that the primary environmental concerns are concentrated within certain buildings, allowing them to pursue a redevelopment strategy without compromising the overall usability of the land.

Investor Information

New Mill Capital LLC is a subsidiary of Industrial Realty Group LLC, a leader in repurposing unused industrial properties across the United States. The firm has an impressive portfolio featuring over 50 million square feet across 70 projects, demonstrating its expertise in transforming and leasing industrial spaces. Notably, their past projects, including the redevelopment of the abandoned McClellan Air Force Base into a successful business park, showcase their capability and commitment to revitalizing industrial properties.

View of Dealert

From an investment perspective, New Mill's acquisition of the Kaiser property is promising. The redevelopment of the site into an industrial park indicates a well-thought-out strategy, particularly given the recognized demand for industrial space in Spokane. The existing infrastructure and proximity to major transportation routes position the property as an appealing option for prospective tenants.

Moreover, while environmental remediation will need to be addressed, New Mill's experience and commitment to thorough due diligence suggest they are well-prepared to manage these challenges. Their approach to handling asbestos and other contaminants with qualified professionals emphasizes their awareness and responsiveness to environmental regulations.

Ultimately, the decision to pursue this property is underscored by the underlying economic indicators favoring industrial growth in Spokane. This project not only has the potential to yield positive returns for New Mill but also contributes to job creation and economic development in the region.

In summary, New Mill's proactive approach to transforming the Kaiser property can be viewed as both a strategic investment and a beneficial endeavor for the Spokane community, setting the stage for future industrial growth in the area.

View Original Article