128th Street Plaza - Everett

Property Overview

128th Street Plaza is an 11,855 SF unanchored retail strip center built in 1997, located at 617 128th Street SW in Everett, Washington. The center was 100% occupied at the time of sale by five tenants: Dickey's BBQ, Ho Sushi Bistro, Papa John's Pizza, 128th Billiards, and a bakery. The property sits on a high-traffic retail corridor connecting Interstate 5 to the Boeing Airplane Company manufacturing facility at Paine Field, roughly 4.5 miles away, and serves a five-mile population of more than 300,000 residents.

Challenge

Our team was engaged to represent both the seller and the buyer in the sale of 128th Street Plaza, with each party requiring a 1031 exchange. Coordinating a dual-exchange transaction added a layer of complexity to an already active escrow, as multiple tenant leases came up for renewal during the process. Keeping the asset at full occupancy while managing the timing demands of two simultaneous exchanges required close attention throughout.

Action

We managed the full transaction from both sides, aligning the seller's disposition timeline with the buyer's acquisition requirements under their respective 1031 exchange deadlines. During escrow, we worked through multiple tenant lease renewals to preserve the 100% occupancy status that underpinned the investment thesis. The NNN lease structure, staggered lease expirations, and contracted annual rent increases were central to the story we presented to the buyer, supporting the asset's income stability and minimal landlord responsibility.

Result

• Sale price of $3,085,000, or $260 per square foot, against an asking price of $3,095,000
• Property was 100% leased at close, with multiple tenant renewals completed during escrow
• Successfully coordinated a dual 1031 exchange, representing both the seller and the buyer
• NNN lease structure with 81% of leasable area carrying contracted annual rent increases provided the buyer with a predictable income stream