Bed Bath and Beyond Retail Center up for Sale

TUKWILA, WA-Regency Realty is looking to unload its 84,380-sf Bed Bath & Beyond Retail Center here, adjacent the 1.5-million-sf Southcenter Mall. The asking price is $13.95 million, or $165 per sf, representing an 8.75% cap rate. Paul Sleeth of Colliers International, Seattle, the listing agent, tells GlobeSt.com the center is 100% occupied and undergoing extensive remodeling.

The development is on 4.54 acres at 240 Andover Park West, amid the largest concentration of retail–some four million sf–in the Pacific Northwest, says Sleeth. “The exceptional tenant mix in the Southcenter area produces a retailing destination with a trade-area draw that far exceeds that of most regional malls and typical power centers.”

The Bed Bath & Beyond retail center, built in 1967, currently produces net operating income of over $1.2 million with its three tenants: Bed Bath & Beyond with 45,476 sf, Guitar Center with 18,066 sf, and Oak Mill Furniture with 20,014 sf. BB&B and Guitar Center’s leases run through December 2010, and Oak Mill Furniture’s lease is not scheduled to terminate until January 2008. Although the price per sf was not made public, Colliers says that the three leases contain escalation clauses.