Hanley Investment Group Completes Sale of Retail Building at Seattle Metro Grocery-Anchored Center
Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sale of a brand-new construction, two-tenant, retail building occupied by a Starbucks with a drive-thru and Pacific Dental Services supported dental office at a WinCo Foods-anchored shopping center in the Seattle metro area. The sale price was $3,732,000, representing a record low cap rate for a multi-tenant retail pad building in the Pacific Northwest and a record low for this year outside of California. Hanley Investment Group has sold 20 Starbucks assets at record pricing in the last 2 years and currently has 9 properties listed for sale or in escrow that include Starbucks.
Hanley Investment Group’s Vice President Jeff Lefko and Executive Vice President Bill Asher represented the seller, an affiliate of Covenant Real Estate Group (CREG) of Henderson, Nevada. The buyer, an all-cash, local buyer from Kirkland, Washington, was represented by Scott Clements of Orion Commercial Partners in Seattle.
“Using our national client database, we generated more than 10 qualified offers in the first two weeks of formally marketing the property and negotiated a quick due-diligence period,” said Lefko. “The investor response is evidence of the continued strong demand for high-performing, national credit tenants with newly minted, long-term triple-net leases in markets with dense, affluent demographics.”
The new, 4,980-square-foot freestanding pad building, which was completed in 2019, sits on 1.16 acres at 164 S.W. Campus Drive in Federal Way, Washington. Federal Way is the largest community along the Interstate 5 corridor in King County.
Starbucks occupies 2,104 square feet and has a brand-new corporate-guaranteed lease. “The new Starbucks features the popular café and a drive-thru,” said Asher. “Approximately 60% to 70% of all business for quick-service restaurants come through the drive-thru. Average Starbucks store sales are approximately 50% greater in locations that have a drive-thru.”
The Pacific Dental Services-supported dental office occupies 2,876 square feet and also has a brand-new lease. Pacific Dental has 750 supported offices in 21 states and plans to add 95 offices by the end of 2019.
The two-tenant pad building is located at the signalized entrance to the WinCo Foods-anchored shopping center with 24,000 cars per day passing by and is strategically situated between both main entrances. According to Lefko, WinCo Foods-anchored shopping center has a mix of service-based, internet-resistant tenants that are positioned for long-term success.
Federal Way is located 5 miles north of Tacoma and 14 miles south of Seattle and is just a 30-minute drive to Seattle Tacoma International Airport from the property. The Seattle-Tacoma MSA is the 14th largest metropolitan area in the United States with over 3.8 million people, which is projected to grow by 4.7% in the next 5 years. In 2018, the Seattle-Tacoma MSA was ranked #1 Best Places for Business and Careers by Forbes and #8 Best Performing Metros in the U.S. by Best Cities.