Staples-Anchored Center Fetches $11M

KENT, WA-The 48,000-sf Orillia Center retail development here has changed hands. Northward Development of Bellevue sold the fully leased Staples-anchored strip center to StarPoint Properties of Los Angeles for $11 million.Only recently completed, Orillia Center is situated on nearly 5.8 acres at South 180th and East Valley Highway, across the street from the Asian-oriented Great Wall Shopping Center. In addition to Staples, the center is home to four restaurants, including a Baja Fresh. StarPoint director of acquisitions Robert Budman tells GlobeSt.com that the capitalization rate on the company’s investment is 7.25%. StarPoint has contracted MK Management to manage the property. StarPoint’s properties are mostly located in Southern California, but the company also owns properties in Texas, Alabama and New Mexico. Orillia Center is StarPoint’s first acquisition in Washington. Adam Fadiga of Realty All of Federal Way represented both sides of the transaction. Most of StarPoint’s existing properties are apartment complexes, but retail is the company’s current focus. “Due to the overheating of the multifamily investment market across the country, retail as an asset class is delivering greater risk adjusted returns than can currently be found in apartment properties,” says Budman. “As a result, our goal is to significantly increase our retail holdings in the Seattle area and other major markets around the country. We are acquiring 50,000- to 400,000-sf centers … offering a distinct competitive advantage and strong anchors with rental upside.”