(For more retail coverage, click GlobeSt.com/RETAIL.)
PORTLAND-The dirt beneath Lowe's new Clackamas-area home improvement store has changed hands for $15.4 million. The Tansley Trust of England acquired the property from a partnership of the Chicago-based Klaff Trust and Acadia Realty Trust.
The property is a 10.66-acre property on SE Johnson Road near Highway 224, Interstae 205 and the Southeast 82nd Avenue retail corridor. Lowe's is leasing the site for no less than 25 years and can extend the ground lease by 20 years in five-year increments.
The broker in the deal, Ted Gibbons of Investment Realty Advisors tells GlobeSt.com that the initial cap rate for the Tansley Trust is about 5.65%. With 10% rental bumps every five years, however, the average cap rate is 7.5%, he says.
"I've done 12 acquisitions for (the Tansley Trust)," says Gibbons, whose company sells net-leased properties nationwide and has two other Lowe's properties and two Home Depot properties on the market. "They are very well represented in the Southeast, Northeast and Mid-West and were looking for a West Coast property to balance their portfolio."
The property address is 13631 S.E. Johnson Rd. The site used to be home to a Levitz Furniture store. The property was made available when Levitz decided to relocate in late 2003 to the long-vacant Sears HomeLife store at the corner of 82nd Avenue and Orchard Lane.
Also in late 2003, Home Depot relocated its store from 10000 S.E. 82nd Ave. to the former HomeBase location further south on 82nd Avenue at Sunnyside Road. Home Depot reportedly outbid Lowe's for the site, paying $16.5 million and keeping Lowe's out of the 82nd Avenue corridor. The upside for Lowe's is that the traffic counts are reportedly higher in front of its site.
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