Harsch Gains Critical Mass Next to SeaTac Mall

FEDERAL WAY, WA-Harsch Investment Properties in Portland now controls 500,000 sf of retail here on three of the four corners at South 320th Street and Pacific Highway South, one of the busiest retail intersections in the Puget Sound region. The fourth corner is the 740,000-sf Sea Tac Mall, now called the Commons at Federal Way.Most recently, in a deal that closed last week, the private real estate company led by Jordan Schnitzer paid $25.4 million for SeaTac Village, a 164,369-sf shopping center at the intersection that is 100% leased. Schnitzer tells GlobeSt.com the acquisition involved the assumption of a $14-million conduit loan. The remainder was paid in cash. The seller of the property, SeaTac Village LLC, is group of investors put together by syndicator Rueben Poplawski. Steve Daneman of Daneman Realty, Poplawski’s stepson, brokered both sides of the transaction.SeaTac Village is located across the street from two other Harsch-owned shopping centers: the 126,689-sf Pavilion II Centre, a 90%-leased property that Harsch developed in 2003; and Ross Plaza, a 190,000-sf center that is 90% leased and scheduled for redevelopment and 15% expansion beginning this October. The traffic count at the intersection exceeds 92,000 cars per day. Tenants at SeaTac Village include Linens ‘N Things, Old Navy, Borders Books, TJ Maxx, Old Country Buffet, Big 5 Sporting Goods, Sterling Savings and a new Rainier Pacific Bank building. Ross plaza tenants include Ross Dress for Less, Trader Joe’s, Michaels and Rite Aid. Tenants at Pavilions II include Best Buy, Office Max and PetSmart.Harsch president Jordan Schnitzer tells GlobeSt.com the center adds to the critical mass of retail it has at the intersection, which will allow for future flexibilities for its tenants at all three properties. “Part of our strategy is the synergy of properties that allow us to achieve greater retention by helping tenants expand and contract,” he says.Harsch Investment Properties and operates 125 properties in six Western states and Oklahoma, including three million sf of retail properties. All told, its commercial real estate portfolio comprises more than 15 million sf of office, retail and industrial properties. The company also owns and manages more than 2,700 multifamily units. In February, Steadfast Commercial Properties acquired the 63-acre Sea Tac Mall for upwards of $37 million and is investing another $9.5 million in renovations. The center was constructed in 1975 and has not since undergone a substantial renovation. The renovation includes updating the mall’s interior and exterior. Exterior work may include the addition of more pad buildings along South 320th Street.