(For more retail coverage, click GlobeSt.com/RETAIL.)
OREGON CITY, OR-Trail's End Marketplace, a 102,395-sf grocery-anchored retail center here has changed hands for $30.55 million or $298 per sf, which translates to a cap rate of about 6.4%. Completing an IRS 1031 exchange, Redwood City, CA-based Matteson Real Estate Equities Inc. acquired the property from Clackamas, OR-based Emmert International. The deal included the assumption of a conduit loan with a 5.1% interest rate.
Trail's End was built in 2000 on 11.4 acres in the 19700 block of Highway 213 and was 95% occupied at the time of sale. It consists of four one-story brick buildings. The anchor tenant is Haggen Food & Drug. Other tenants include Quiznos, Cold Stone Creamery, First American Title, Coldwell Banker, State Farm, Wilco farm supply store and Carl's Jr. Wilco and Carl's Jr. are on ground leases.
The per-sf purchase price is a record for suburban grocery-anchored retail centers in the Portland/Vancouver metro area, according to Co-Star. Gary Imbrie and Ryan Imbrie of Sperry Van Ness/Gary Imbrie Realty in Beaverton, OR, had the disposition assignment.
The asking price was $32 million. Imbrie tells GlobeSt.com the property was marketed for six months and generated a lot of interest and many offers but was hindered by deferred maintenance and limited financial information from privately-held Haggen.
"Haggen wouldn't release any information and they are 60,000 sf of the 102,000-sf center," Imbrie says. "A lot of interested buyers walked away because they couldn't verify Haggen's numbers. The ultimate buyer went to Haggen's headquarters in Bellingham, WA; they didn't get data but they got comfortable."
An Internet search turned up offering information on the property that shows an expected 2006 gross income from the property of $2.08 million and expected pre-tax cash flow of just over $606,000. Haggen is paying just over $17 per sf in rent while most of the rest of the tenants are paying between $20 and $24 per sf per year, according to the offering information.
Imbrie also recently brokered the sale of Baker Street Square in McMinnville, OR. The 46,762-sf strip center sold for $6.75 million, which translates to a 7.3% first-year cap rate. The property is anchored by Dollar Tree and Shari's restaurant and has 10 tenants in total. It was built in the early 1980s. Argonaut Investments LLC of Corte Madre, CA, acquired the property from Oregon-based Truax Holdings.
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