TACOMA, WA – CBRE Executive Vice President Philip D. Voorhees announced today that he and the National Retail Investment Group – West (NRIG-West) team completed the sale of Lincoln Plaza, an 80,922-square-foot community shopping center in the city of Tacoma, WA, leased to a complementary mix of retail, service and restaurant tenants including Big 5, Jared The Galleria Of Jewelry, Men’s Warehouse, Skechers, Starbucks, Wingstop, Sprint and others. The sale price was $26.7 million. The property was approximately 95% occupied at the time of sale.
CBRE’s retail investment experts Voorhees, Brad Rable, Megan Wood, Matt Burson, Jimmy Slusher, Todd Goodman, and Preston Fetrow, in partnership with Dino Christophilis of CBRE’s Seattle office, represented the seller, PASSCO Companies, LLC, an Orange County, Calif.-based national real estate investment firm. The buyer, a privately-held real estate partnership based in the Pacific Northwest, represented itself in this transaction.
“At $330 per square foot, Lincoln Plaza sets a high water mark for an unanchored center of its size in the Pacific Northwest. Yet, given increasing construction costs and high demand for land in the supply- constrained greater Puget Sound, Lincoln Plaza represents a fair deal relative to replacement cost,” said Voorhees.
“We love this sort of transaction: great pricing for the seller, and a buyer with the local contacts and expertise to achieve real value with the property in the years to come,” said Voorhees. “With the current historically wide spread between cap rates and interest rates, we are enjoying a rare market that presents exceptional opportunities for sellers and buyers using modest leverage.”
Built in 1988, Lincoln Plaza encompasses a 7.52-acre site within Tacoma’s “retail hub” at the NWC of S. Steele Street and S. 38th Street, just west of I-5, and less than one-mile north of Tacoma Mall.
According to Rable, “Lincoln Plaza provided an appealing combination of stable income with immediate upside potential. The property is situated within the Tacoma Mall retail hub and benefits from excellent visibility along S. 38th Street. The infill Tacoma location attracted significant private capital investor interest. Ultimately, an experienced operator with strong tenant relationships prevailed. We believe the new owner will continue to improve the tenant mix at Lincoln Plaza.”
According to Voorhees, the CBRE team’s marketing system distributed more than 577 offering memoranda to investors and brokers, and through the team’s “managed bid” offer process, generating multiple offers to purchase the property.
In 2015, the NRIG-West team was CBRE’s #1 retail investment team nationally with a total transaction volume exceeding $940 million in 63 transactions, encompassing 88 properties, totaling more than four million square feet in size. With this closing, CBRE’s NRIG-West team has closed 186 transactions since the start of 2012 for a total consideration of $3.4 billion. In total, the NRIG-West team has listed and sold more than $9.4 billion in retail transactions. Select NRIG-West Team California listings include Mountain Green Shopping Center in Upland, Calif., listed for sale for $35,248,000; Mission Valley Retail in San Diego, Calif., listed for sale for $14,329,000; and Brea Center in Brea, Calif., offered for sale for $20,750,000. More information available at www.cbre.com/nrigwest
NRIG-West team focuses exclusively on retail investment properties in the western states (including CA, OR, WA, ID, NV, MT, WY, UT, AZ, NM and HI). The team’s ability to collaborate across CBRE’s multi-discipline platform enhances the team’s role as strategic advisors to Western U.S. clients in the disposition and acquisition of retail properties, and ensures the delivery of superior results in today’s investment market. Long recognized as industry-leading investment experts, the NRIG-West team continues to specialize in portfolio, anchored centers, strip centers, single-tenant assets, specialty retail projects, REO and Receivership assets and parcelized disposition strategy opportunities. Based in Orange County, Calif., the team consists of specialists with institutional and private client relationships, and leverages institutional quality knowledge and service across unparalleled access to private capital investors and the brokers who represent them, domestically and around the world. View listings: listings.nrigwest.com
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
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