The larger of the two centers is Fairwood Shopping Center in Renton, a 218,000-sf development anchored by QFC, Ace Hardware and a branch of Washington Mutual. Center trust had owned the property since 1998 and sold it to GMS for $23.85 million. The other property is Covington Square in Covington, WA, a 155,000-sf center anchored by Safeway and Rite Aid. Covington, incorporated in August 1997, lies half a dozen miles northeast of Auburn along State Route 18. Jeff Vitek of CB Richard Ellis' San Diego Central office represented Center Trust in the transaction. Commercial Realty Group Inc. and Trammell Crow Corp. represented GMS.

A source at GMS tells GlobeSt.com Western Washington is a "major area of expansion" for GMS because of the strong economy and a "well-educated, knowledge-based work force." GMS anticipates healthy growth of the retail sector in metropolitan Seattle and plans to step up its presence here with similar developments or acquisitions. "The company will absolutely expand its presence here," says the source. "It's a great market for GMS's strategy of adding value through creating more of a destination atmosphere by adding cool restaurants or retailing concepts."

GMS Realty is a privately held company focusing on neighborhood and community shopping centers in the Western United States. Company president/CEO William Gerrity and the financial services firm Morgan Stanley founded the company. Last year, Morgan Stanley's interest was sold to Iowa-based insurance firm, Principal Financial Group, which GlobeSt.com is told has substantial real estate holdings of its own in Washington.