Anacortes Retail Center

Property Overview

The Anacortes Strip Center is a 5,042 SF unanchored retail strip center built in 1985, located at 910 11th Street in Anacortes, Washington, approximately 1.5 hours north of Seattle. The property sits on a prominent corner directly across from the city's busiest Safeway grocery store and Cap Sante Marina, which features 950 boat slips. At the time of sale, the center was 100% leased to four tenants under NNN leases, with three of those tenants having operated at the property for more than 13 years. Average in-place rents of $22 per SF were below comparable retail centers in the submarket.

Challenge

Our team was engaged to sell a fully leased retail investment on behalf of a nonprofit foundation, which had received the property as a donated asset from the original owner. Because the seller was a nonprofit operating through a representative, the transaction required careful coordination to meet the foundation's disposition objectives. To strengthen the asset's position ahead of sale, our team also negotiated lease extensions with two of the four tenants, ensuring the buyer would step into a stable, long-term income stream.

Action

We brought the property to market as an on-market offering, positioning it around the fundamentals that made it compelling to retail investors: full occupancy, a track record of nearly 20 consecutive years at 100% leased, NNN lease structures with scheduled rent increases, and a below-market average rent of $22 per SF that offered room for future growth. Prior to launching, we negotiated lease extensions with two tenants to reduce near-term rollover risk and improve the property's appeal to prospective buyers. Marketing emphasized the corner location, strong co-tenancy with Safeway and surrounding national retailers, and the property's role in a supply-constrained coastal market. A new TPO membrane roof that was recently installed was highlighted as a capital improvement that reduced buyer risk.

Result

• Sold for $1,625,000, or $322 per SF
• Negotiated lease extensions on two tenants prior to closing, strengthening the income profile presented to buyers
• Delivered a clean disposition for a nonprofit foundation seller, with both buyer and seller represented through the transaction
• 100% occupancy maintained at close, with four tenants in place under NNN leases