GlobeSt.com UPDATE: Two New Retail Centers Near Wal-Marts Fill Up

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PORTLAND-Two small, new retail developments adjacent to Wal-Mart stores in Clackamas and Wood Village are fully leased in advance of their grand openings. Trammell Crow Co. is overseeing the projects for their respective owners. TCC senior vice president Jim Parsons tells GlobeSt.com that both projects are filled with multi-location national tenants that look specifically to locate at Wal-Mart- and Target-anchored centers. “Because those two have been expansive, they are the preferred anchors for a number of retailers,” says Parsons. One of the projects, Wood Village Shops, is a $3.3-million, 10,400-sf development at the confluence of Northeast Sandy Boulevard, Interstate 84 and 238th Northeast. It sits directly in front of the Wood Village Wal-Mart, which attracts 20,000 shoppers a week and is in the process of being expanded by 50,000 sf to become a Wal-Mart Supercenter–the largest in the Portland Metropolitan area. Tenants at Wood Village Shops include Payless ShoeSource, EB Games, Allied Cash Advance, Taco Del Mar and Quiznos Subs. The going triple-net lease rate for retail in the area is around $25 per sf per year, according to local retail brokers familiar with the market. A grand opening celebration is scheduled for next month.The developer is Atlas Wood Village, which master planned 30 acres there in 1998. Trammell Crow purchased the land at that time and simultaneously sold off 19 acres to Wal-Mart. Another acre was sold to Jack-in-the-Box, and a five-acre parcel was sold to Olinger Travel who moved their east side headquarters facility from Clackamas. The remaining one-acre parcel is the Wood Village Shops project, for which the land sale closed in July 2004. The shops were constructed by Joseph Hughes, with financing provided by Bank of America. Permanent financing will be provided by Nomura Holdings Inc.A similarly-sized retail development on Southeast 82nd Avenue–in front of the former Home Depot space that will re-open as a Wal-Mart in a few months–has been leased up for about 60 days now, says Parsons, who is overseeing the project for Kite Development. Tenants include Washington Mutual Bank, Quizno’s, Cold Stone Creamery, EB Games, Taco Del Mar and Allied Cash Advance. The going triple-net lease rate for retail in the area is in the mid- to upper $20s per sf per month, according to local brokers familiar with the area.