Vestar Considers All Factors in Retail Portfolio Purchase
Vestar recently purchased a six-property 297,599-square-foot retail portfolio for $95 million in an off-market transaction, and it now owns and manages more than 1 million square feet of retail property.
LYNNWOOD, WA—Vestar recently purchased a six-property 297,599-square-foot retail portfolio for $95 million in an off-market transaction from the original developer. With this acquisition, Vestar expands its footprint in Washington State, owning and managing more than 1 million square feet of retail property including The Landing in Renton and James Center in Tacoma.
Developed between 1997 and 2002, the six properties (Alderwood Parkway Place, Alderwood Parkway Plaza, Alderwood Parkway Plaza II, Golde Creek Plaza, Golde Creek Plaza II and Golde Creek Plaza III) are located at the Northeast and Northwest corners of Alderwood Mall Parkway and 196th St. SW in close proximity to Alderwood Mall, a high-performing shopping center in one of Seattle’s most desirable retail corridors.
“This was a unique and nuanced acquisition for Vestar in that each of the six properties had their own set of factors to consider,” said Clint Marchuk, Vestar’s vice president of acquisitions. “We are confident that our strategic leasing and management services will further enhance the performance of the property and overall customer experience.”
The portfolio is 100% leased and anchored by several national brands including Best Buy, Ulta, Nordstrom Rack, DSW Shoe Warehouse, Barnes & Noble and Old Navy.
“Vestar worked nearly a year on this acquisition. It was important to us not only because of the strong tenant base, but because we recognized the viability of the area,” Marchuk tells GlobeSt.com. “We anticipate significant growth within our trade area from the Lynnwood Link light rail extension less than a mile away. This will provide direct access to vital communities including downtown Seattle, Sea Tac Airport, Northgate, University of Washington and more.”
Paul Sleeth and Billy Sleeth of Newmark Knight Frank represented the seller in the transaction.
Strong sales in construction, and new and used automobiles continued to boost the state’s taxable retail sales in second quarter 2019, according to the Washington State Department of Revenue. The taxable retail sales increased by 7.6% that quarter from the same period in 2018, reaching $46 billion.
Retail trade, a subset of all taxable retail sales in the state, also increased by 8% to a total of $19.2 billion. Retail trade includes sales of items such as clothing, furniture and automobiles, but excludes other industries such as services and construction, says the department.