Church purchases 823,000-square-foot Pacific Gateway Industrial development for $260 million

[Cruiserdude]

From my experience LLCs are best described as tools for sinister men to look justified.

I have one

Sounds like you are working your way into one of those red cushiony comfy chairs they use for the important people at conference

Free travel and an army of obedient salesmen? Don’t mind if I do

Yessir! Right away, sir!

[JK4Woods]

Panattoni and Link Logistics purchased the 42-acre site from The Boeing Co. for $60 million in early 2020.

$200million increase in price in 2 years?! Is there a Fort Knox Annex on the property or something?

Somebody made a KILLING on that deal....

It’s worst than that.
Church paid $6,190,476 per acre two years after Panatoni bought it at $1,428,571 per acre.

Looks like large scale money laundering….

[Dusty Wanderer]

Panattoni and Link Logistics purchased the 42-acre site from The Boeing Co. for $60 million in early 2020.

$200million increase in price in 2 years?! Is there a Fort Knox Annex on the property or something?

Somebody made a KILLING on that deal....

It’s worst than that.
Church paid $6,190,476 per acre two years after Panatoni bought it at $1,428,571 per acre.

Looks like large scale money laundering….

This is what I was thinking, too. Get’s the money off the books and there’s no telling where it actually ends up.

[Dusty Wanderer]

Panattoni and Link Logistics purchased the 42-acre site from The Boeing Co. for $60 million in early 2020.

$200million increase in price in 2 years?! Is there a Fort Knox Annex on the property or something?

Link Logistics was established by Blackstone in 2019.

Maybe the church wants some of that supply chain leverage. So hot right now.

[mtmom]

Panattoni and Link Logistics purchased the 42-acre site from The Boeing Co. for $60 million in early 2020.

$200million increase in price in 2 years?! Is there a Fort Knox Annex on the property or something?

Somebody made a KILLING on that deal....

Follow the money. Who did they buy it from?

Good point

[Robin Hood]

Any idea why they would pay so much for that property?

Good question. Works out to purchase price of $315/sqft.

Costs to build a standard 500,000 sqft tilt warehouse/distribution center today would cost about $110/sqft. Then you’d have to add the warehouse racking and inventory system, forklifts etc, often all this is paid for by the occupant/leasee.

So the land costs must make up the difference.

When you figure that money could have built ten temples at $25 million a pop… one wonders are we a church, or a business corporation..??

And Jesus told the rich man… go sell everything you have, give it to the poor, and come follow me…

A temple costs a lot more than $25 million.

[Sunain]

Panattoni and Link Logistics purchased the 42-acre site from The Boeing Co. for $60 million in early 2020.

$200million increase in price in 2 years?! Is there a Fort Knox Annex on the property or something?

Link Logistics was established by Blackstone in 2019.

Maybe the church wants some of that supply chain leverage. So hot right now.

The church couldn't possibly pick a worse company in the entire world than Blackstone to buy it from. Sigh...

[silverado]

Panattoni and Link Logistics purchased the 42-acre site from The Boeing Co. for $60 million in early 2020.

$200million increase in price in 2 years?! Is there a Fort Knox Annex on the property or something?

Somebody made a KILLING on that deal....

It’s worst than that.
Church paid $6,190,476 per acre two years after Panatoni bought it at $1,428,571 per acre.

Looks like large scale money laundering….

Panattoni bought it from Boeing and began development of the property in June of 2020. Most of the large buildings were built between then and May of 2022. That might explain the huge increase in cost per acre.

[TheDuke]

I'm not saying it is a good or bad investment. But that is what it is and it is not just land, it has been improved or had buildings with special power etc... added. It is more than warehouses (as I already stated) it is factory space, where future rockets and rocket motors are being built. Funny how little (obviously NONE) research is done by LDS FF folks and declaring money laundering, etc.... instead of a quick search to see what the real property is. BTW we've got a lot of improving property now, here in King Co. Boeing isn't doing much any more and our local billionaires like to build things close to where available employment is (I know several former Boeing that are now Space X and Blue Origin. BTW BO is also making and selling just the BE engines as well (to replace Roscosmos Russian engines in existing rockets that are not BO rockets). Perhaps a wise investment.

[tribrac]

Silly of LDSFF to assume the church was doing something funny with money, instead of drawing the obvious conclusion that the church was purchasing a rocket factory.

We need the rockets to contact the tribes on the Battlestars.

[Robin Hood]

I'm not saying it is a good or bad investment. But that is what it is and it is not just land, it has been improved or had buildings with special power etc... added. It is more than warehouses (as I already stated) it is factory space, where future rockets and rocket motors are being built. Funny how little (obviously NONE) research is done by LDS FF folks and declaring money laundering, etc.... instead of a quick search to see what the real property is. BTW we've got a lot of improving property now, here in King Co. Boeing isn't doing much any more and our local billionaires like to build things close to where available employment is (I know several former Boeing that are now Space X and Blue Origin. BTW BO is also making and selling just the BE engines as well (to replace Roscosmos Russian engines in existing rockets that are not BO rockets). Perhaps a wise investment.

I don't think I understood any of that.

[JK4Woods]

Any idea why they would pay so much for that property?

Good question. Works out to purchase price of $315/sqft.

Costs to build a standard 500,000 sqft tilt warehouse/distribution center today would cost about $110/sqft. Then you’d have to add the warehouse racking and inventory system, forklifts etc, often all this is paid for by the occupant/leasee.

So the land costs must make up the difference.

When you figure that money could have built ten temples at $25 million a pop… one wonders are we a church, or a business corporation..??

And Jesus told the rich man… go sell everything you have, give it to the poor, and come follow me…

A temple costs a lot more than $25 million.

Depends on the size.
Two new temples coming to Nevada.
Elko temple will be 10,000 sqft and cost approximately $6.5 million

Second Las Vegas temple will be 87,000 sqft and cost $39 million.

So $25 million is decent average budget for smaller, simpler temples including land and development costs.

Bigger temples in areas with larger member populations (and more tithing income), cost more, because they are bigger, and have more amenities and often are more ornate.

Check out Tijuana, Mexico temple. Similar to Payson, UT, but with mission style ornateness.

[Niemand]

That is a huge building they bought! What will they use that for? It looks like Boeing bought the last building in that complex for a whole lot less. Curious.

It's for the space arks when they leave for Mars with Elon.

[TheDuke]

The land and building are being built up and used for designing and building Blue Origin ROCKETS and rocket engines. Not sure what isn't clear about that? That is why the values are up. Not saying it is a good investment but I am saying that given the US has declared that the current engines used to launch space craft (Russian engines by Roscosmos) are illegal and BO is the only other game in town. I would say they have a lock on making money as much as any manufacturing product build in the actual USA. Seems like a sound investment product. As far as a fair price, not my area of expertise.

But it is just an investment, and at least one in a product seemingly destined for the near future (unless you put all your eggs in Space-X) vs. buying a mall anyway.

[Sunain]

It also should be of note that the Seattle area land prices are very high, just like here in the Vancouver area. It seems they might use these buildings to rent out just like a lot of the real estate they've purchased in recent years. The ROI for all the buildings being rented out probably isn't that long, even with a price tag of $260mil. The church is probably more willing to do long term gains instead of Boeing or Blackstone who are probably trying for quicker returns. Seems like a property flip.

[tribrac]

Duke,

At the risk of upsetting you I want to ask a couple questions. Because I know land and buildings can house manufacturing, but I don't see the connection to the church owning a building and how the church can make money because of rockets. Unless the real estate purchase comes with rocket plans, and rocket making equipment, and rocket contracts, and rocket making workers.

Or were you only suggesting the church's investment could be resold for a profit when the real rocket makers move in and need industrial space?

[silverado]

Duke,

At the risk of upsetting you I want to ask a couple questions. Because I know land and buildings can house manufacturing, but I don't see the connection to the church owning a building and how the church can make money because of rockets. Unless the real estate purchase comes with rocket plans, and rocket making equipment, and rocket contracts, and rocket making workers.

Or were you only suggesting the church's investment could be resold for a profit when the real rocket makers move in and need industrial space?

Or leased to the rocket makers?

[tribrac]

Duke,

At the risk of upsetting you I want to ask a couple questions. Because I know land and buildings can house manufacturing, but I don't see the connection to the church owning a building and how the church can make money because of rockets. Unless the real estate purchase comes with rocket plans, and rocket making equipment, and rocket contracts, and rocket making workers.

Or were you only suggesting the church's investment could be resold for a profit when the real rocket makers move in and need industrial space?

Or leased to the rocket makers?

Yes, as sunain suggested. If you have capital, purchasing a leased building makes money sense.

Poor people (like me) tend to think about purchasing a thing to use, rich people purchase things to make more money.

[BeNotDeceived]

Duke,

At the risk of upsetting you I want to ask a couple questions. Because I know land and buildings can house manufacturing, but I don't see the connection to the church owning a building and how the church can make money because of rockets. Unless the real estate purchase comes with rocket plans, and rocket making equipment, and rocket contracts, and rocket making workers.

Or were you only suggesting the church's investment could be resold for a profit when the real rocket makers move in and need industrial space?

Or leased to the rocket makers?

Rocket makers?

[TheDuke]

Yes, my only point is that the church likely purchased "improved land", in this case factory space. this space as I read is fully leased for many years to BO and possibly others. This means they buy property and put it under lease and make profits. My point was that, at least in this area, it is likely that the best "manufacturing" product left in the US is rockets and other high tech aviation, if you don't want to be seen purchasing war material, then forget Boeing, LM, Grumman, etc, that only leaves space corporations. They are mostly private. Get an in by purchasing their factory floor space....................... Again, I understand the reasoning, but I'm not saying the prices are right or profits will be made or anything. Just that it does seem like a good, mid-level (> $100M < $1B) investment method. BTW never said the church was getting into the rocket business. But, I will persist in saying that if the global economy keeps on for a few years, it does seem like a valid manufacturing business to be around or work in.

[Vision]

Duke,

At the risk of upsetting you I want to ask a couple questions. Because I know land and buildings can house manufacturing, but I don't see the connection to the church owning a building and how the church can make money because of rockets. Unless the real estate purchase comes with rocket plans, and rocket making equipment, and rocket contracts, and rocket making workers.

Or were you only suggesting the church's investment could be resold for a profit when the real rocket makers move in and need industrial space?

The tenants/rocket makers have long term leases (20 year+) which have rent escalations built in and options for renewals with the tenant paying the insurance, taxes, utilities and common area maintenance fees. They are called NNN Leases which are sold at a capitalization rate, or a return on investment.

For example a NNN property is offered at $1mm dollars with a 5% cap rate with 20 year leases. The 5% cap rate equals $50,000.00 per year plus the tenant is paying the insurance, property taxes, utilities and CAM fees. At the end of the 20 year lease the property owner has their original $1mm back ($50,000.00 x 20 = $1mm) and now owns the property free and clear. Triple net investing is a great way to passively invest with low risk.

[Christianlee]

It may be a smart investment. I am not sure how it contributes to teaching people about Jesus Christ. You would think the LDS Church would have something like EWTN, Daystar or TBN as a major investment. BYU-TV has mostly become entertainment. BYU radio has limited gospel content. But they may have calculated the proceeds from this building will convert more people than gospel centered mass media outlets. Or they realize people aren’t interested in the Mormon message.

[Lineman1012]

So it’s a great investment - SO WHAT!!

We pay tithing so the church can invest it? I have a better idea. How about I keep my tithing money and I invest it myself.

This is getting ridiculous. Is the COJCOLDS - soon to be known as the “Mormons” - a religion or an investment company?

I mean, besides investing in malls, Covid shots and swamp land, they have invested billions of the Lords money in about every man made invention, why not a rocket factory.

Better idea, use the money to help the poor! Think of how much service a CHURCH could do if all the tithing money went into help the poor. Who knows, maybe by the time the money was used, there wouldn’t be any more poor amongst us.

[tribrac]

So we have concluded the warehouse will not house the Lost 10 Tribes. Instead it makes rockets, and those rockets are not for contacting the Battlestars, and the rockets are not even owned by the church because it is a rental.

So, I guess the only question that remains....is how long is the lease? I mean if it is a 10-year lease we can be sure the Second Coming won't be before 2033.

[Vision]

So we have concluded the warehouse will not house the Lost 10 Tribes. Instead it makes rockets, and those rockets are not for contacting the Battlestars, and the rockets are not even owned by the church because it is a rental.

So, I guess the only question that remains....is how long is the lease? I mean if it is a 10-year lease we can be sure the Second Coming won't be before 2033.

Leases have a corporate guarantee that survives everything so the tenant will still be on the hook in the millennium