WA State Multi-Tenant Assets with Drive-Thrus are Investor Favorite
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MARYSVILLE, WA—As investors continue to see the value in multi-tenant retail with drive-thrus, a newly constructed 11,142-square-foot property located in the Seattle metro area has recently sold. The six-tenant property consists of two retail buildings of 5,542 square feet and 5,600 square feet, and is 100% leased to Starbucks with a drive-thru, Pacific Dental Services, Jersey Mike’s Subs, Dickeys, AT&T and OneMain Financial.
Hanley Investment Group’s executive vice presidents Jeff Lefko and Bill Asher represented the buyer, a private investor from the Seattle metro area, and the developer and seller based in Henderson, NV. Hanley Investment Group has also sold 25 Starbucks assets, most at record pricing in the last two years located throughout the US and currently has three properties listed for sale that include Starbucks.
During that time, Hanley sold 86 multi-tenant retail assets across the country valued at $573 million including three retail properties in the Seattle metro area at record pricing. Along with the Marysville transaction, Hanley Investment Group has arranged the sale of a two-tenant Pacific Dental and CHI Franciscan Health property in Puyallup, WA, and a new construction two-tenant Starbucks with a drive-thru and Pacific Dental at a WinCo Foods-anchored shopping center in Federal Way, WA, selling for a total of $17.77 million in the last 10 months.
“There remains an extremely strong demand for this product type in the Pacific Northwest,” said Lefko. “We procured a 1031 exchange buyer based out of the Seattle area that opened escrow with a large non-refundable deposit to secure the deal (in Marysville). Starbucks relocated from the adjacent center because it wanted a drive-thru. Starbucks had been looking in this market for a long time and jumped at the opportunity to relocate to this freeway adjacent location. Now more than ever, investors are more focused on market and retailer fundamentals, corporate long-term leases and essential services types of retailers, specifically those with drive-thrus.”
The property is adjacent to Interstate 5 on/off ramp at 88th Street Northeast located at 8820 and 8830 36th Ave. Northeast. Retailers and entertainment in the area include Tulalip Resort Casino, stores at the Seattle Premium Outlets, Cabela’s, The Home Depot, Walmart Supercenter, Bob’s Burgers, Haggen, Safeway, Applebee’s Grill + Bar and Panera Bread.
“In the past 24 months, CoStar reports that there have been 109 multi-tenant retail sales in the state of Washington with an average sale price of $2.41 million, representing a 6.25% average cap rate,” Lefko tells GlobeSt.com. “Within the multi-tenant retail category, the new construction multi-tenant pad space is certainly experiencing cap rate compression in part due to a lack of quality supply in 2020.”
And, Washington State properties in the multi-tenant category have been…
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