Barkley Crossroads

Property Overview

Barkley Crossroads is an 18,657 SF unanchored retail center built in 2007 at 1255 Barkley Blvd in Bellingham, WA. The property sits just off Interstate 5 at exit 255, along a primary retail corridor with traffic counts exceeding 33,000 vehicles per day. Every tenant lease includes 2%–5% annual rent increases built into the base rent.

Challenge

Our team was engaged by the original developer of Barkley Crossroads to sell the property. The assignment required structuring a transaction that accommodated both a seller 1031 exchange and a buyer 1031 exchange simultaneously, while also negotiating a sale-leaseback for a portion of the space. Coordinating the timing and terms across both exchange requirements added a layer of complexity beyond a standard investment sale.

Action

We brought Barkley Crossroads to market as an on-market offering, positioning it as a professionally managed, multi-tenant retail investment with built-in income growth. Our marketing emphasized the property's location at the gateway to the 814-acre master-planned Barkley neighborhood, its high-traffic Interstate 5 frontage, and the annual rent escalations embedded in every lease. In parallel, we negotiated a sale-leaseback arrangement for the portion of the space occupied by the seller, ensuring the transaction structure worked for both parties and that the buyer was acquiring a stabilized asset.

Result

• Sold for $6,550,000 ($351/SF)
• Property was 94% occupied at the time of sale
• Successfully structured a dual 1031 exchange, satisfying both the seller's and buyer's exchange requirements
• Negotiated a sale-leaseback for a portion of the space, allowing the seller to retain occupancy while completing the disposition
• Represented the seller, who was the original developer of the property