JC Penney signed a long-term lease for the space that commenced in August 2008 at an average rent of $9.94 per square foot per year, according to SEC filings. The store is opening in February. The purchase price reportedly translates to a 7.34% capitalization rate for the new owner, MRM South Hill LLC. The company's manager is listed as Jeff Williamson, and the associated address is 3927 Lake Washington Blvd. NE in Kirkland, WA, according to Washington Secretary of State's web site.

Company senior vice president Craig Ramey declined to confirm the sale price and cap rate data supplied by a local industry source. He attributed the sale--in an otherwise quiet market—to the quality of the tenant, the building and the location.

The other two Mervyn's locations Regency acquired from Kohl's are located in Lynwood, near Lynwood Mall, and within Tanasbourne Town Center in Hillsboro, OR. Like the Puyallup asset, the Lynwood and Hillsboro assets are expected to be re-traded by Regency, which typically owns grocery-anchored centers as opposed to single buildings.

The Lynwood asset, a 77,028-square-foot building, is part of a shopping center on 184th Street SW that is next to Lynwood Mall. Regency recently filled the building with H-Mart, a leading retailer for Asian foods, furniture, home accessories, clothing and ethnic specialties in the Seattle-Tacoma-Bellevue metro area. H-Mart opened up shop in July and pays an average rent of $16 per square foot, according to SEC filings.

The Hillsboro asset, a 76,900-square-foot building at New Evergreen Parkway and Highway 26, is now home to a 36,278-square-foot Best Buy and a 40,205-square-foot Sports Authority. The two anchors opened shop in March. The combined average rent is $27.45 per square-foot per year, according to SEC filings.

Regency owns, operates, and develops grocery-anchored and community shopping centers. The company owns approximately 440 retail properties.