Newmark recently announced it has completed the $45 million sale of Lynnwood Crossroads, a 103,141-square-foot, dominant grocery-anchored shopping center in the Seattle suburb of Lynnwood, Washington. The property traded from Sterling Realty Organization—a privately held, Bellevue-based real estate investment firm—to Sakioka Farms, a privately held, high-net-worth family office based in Orange County, California. The property traded in an all-cash 1031 exchange. Newmark Executive Managing Directors Billy Sleeth and Paul Sleeth represented the seller in the transaction. The buyer was represented by Newmark Vice Chairman Pete Bethea and Senior Managing Directors Glenn Rudy and Rob Ippolito.
Lynnwood Crossroads is a dominant, institutional-quality, 100% leased shopping center anchored by Sprouts Farmers Market. Additional national credit tenants include LA Fitness, Starbucks, Jersey Mike’s Subs, Five Guys, The Joint Chiropractic, Great Clips and Qdoba. The center benefits from a solid, captive location within a regional retail trade area located 2.5 miles from the 1.5 million-square-foot Alderwood Mall and three miles from the future 1.3 million-square-foot Lynnwood Place development. Lynnwood has one of the largest concentrations of
retailers in the region with neighboring retailers located along Pacific Highway including Walmart,
Costco, Walgreens, Bartell Drugs, Safeway, Trader Joe’s and Albertsons.
“Sterling Realty Organization assembled, developed and leased the property to a very high standard, enabling them to capitalize from aggressive investor appetite for best-in-class retail assets,” said P. Sleeth.
Located directly on a high-traffic intersection at Pacific Highway 99 and 196th Street SW, the center benefits from excellent access and billboard-quality visibility. The intersection sees an average of more than 63,000 vehicles per day. Pacific Highway 99 is the main highway serving the entire Seattle MSA trade area. Located at the junction of Interstate 5 and Interstate 405, Lynnwood is a suburban bedroom community for Seattle, Everett and Bellevue. It is located approximately 17 miles north of Seattle, 20 miles northwest of Bellevue and 13 miles south of Everett.
“Driven by a 1031 exchange requirement, the buyer was attracted to the newer, high quality construction anchored by a preferred specialty grocer in a desirable Pacific Northwest submarket with significant barriers to entry,” said Rudy.
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