REIT Acquires Sunset Esplanade for $28.58M

HILLSBORO, OR-After 13 years of ownership, Bay 605 Corp. has sold the Sunset Esplanade shopping center for $28.58 million. The new owner is Vista, Calif.-based Pan Pacific Retail Properties, the largest owner of community shopping centers in the Portland Metro area. The sale closed escrow in late February.

The shopping mall sits on 32 acres at the corner of Southeast Cypress Street and Tualatin Valley Highway. Buildings on the property total 357,943 sf, but Target owns its 100,000-sf store so the transaction included only 256,034 sf rentable. Safeway, Rite Aid and Petco are other anchor tenants.

Lou Lauman of CB Richard Ellis, who had the disposition assignment, tells GlobeSt.com the asking price for the mall was $29.5 million. The disposition was handled as a managed bid process, and Lauman says he garnered offers from 10 qualified buyers, including pension fund advisers, REITs and large private investors. The new owner’s capitalization rate on the deal is “just under 9.5%,” says Lauman, who worked the deal with CBRE’s Bob Dunn.