Core Seattle Retail Starts Pricing Out Investors
- Jun 16, 2015
As the core of the Seattle MSA is slowly being suffocated by investor interest, focus is slightly shifting to areas with less pressure from flowing capital. A case in point is the recent sale of Woodinville Plaza, on the Eastern end of the Puget Sound area. Its location in an affluent neighborhood of the Seattle metro, combined with a large population, makes the retail asset almost perfectly fit the profile of the new hot commodity in the area.
The property was acquired by Retail Property of America for a price of $35.3 million. This is the buyer’s latest purchase in the Seattle MSA, which has grown by 350,000 square feet over the past 18 months.
The shopping center totals 171,000 square feet of retail space, and currently has a vacancy rate of around 9 percent, still over the Seattle metro’s average rate by almost 400 basis points, and far higher than the vacancy rate recorded for Eastside submarkets. Its current anchor tenants are County Market, a SUPERVALU concept, T.J. Maxx and Rite Aid.
Woodinville Plaza is located in an area that boasts an average household income of more than $110,000 and a population of nearly 190,000. The per-square-foot price came in at around $206, well under the average price paid for multi-tenant properties in the Metro, according to Marcus & Millichap data. The current average price stands at $240 per square foot for comparable neighborhood retail properties.