Black Lake Village Retail Center

Property Overview

Black Lake Village Retail Center is a 45,906 SF retail center located at the signalized corner of Capital Mall Drive and Black Lake Boulevard in Olympia, Washington. The property is comprised of four single-tenant stand-alone buildings and two multi-tenant retail shop buildings, situated directly across from the 860,000 SF Capital Mall. National tenants including Panera Bread, Mattress Firm, CosmoProf (Sally Beauty), and Outback Steakhouse occupy 51% of the center, with 42% of the tenancy having been in place for more than ten years.

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Challenge

Our team was engaged by the original developer to sell Black Lake Village Retail Center, a 45,906 SF multi-tenant retail center in Olympia, Washington. The property carried an environmental condition that complicated the transaction and narrowed the pool of viable buyers. At the same time, the center was 85% occupied at the time of listing, leaving vacant shop space that required a clear value-add narrative to attract qualified investors. Renewing the anchor tenant during escrow added another layer of complexity that had to be managed without disrupting the sale process.

Action

Erik and Mike structured a marketing campaign that presented the property's current income alongside a credible path to stabilization. The investment thesis centered on the combination of long-term national tenants on net leases, below-market shop rents averaging $18.37 per square foot against a market range of $20 to $25 per square foot, and the center's position at a high-traffic signalized intersection with combined vehicle counts exceeding 35,000 per day.

To keep the transaction on track, our team:

• Negotiated and executed an anchor tenant lease renewal during the escrow period, preserving income stability for the buyer
• Managed the environmental condition transparently throughout due diligence, qualifying buyers who could assess and accept the associated risk
• Maintained consistent communication between the seller and buyer through each stage of escrow to closing

Result

• Sold the property for $12,604,000, or $275 per square foot
• Delivered a successful closing for the original developer despite an environmental condition on the property
• Renewed the anchor tenant during escrow, protecting the center's income profile through the transaction
• Closed with the property at 85% occupancy, preserving the value-add upside for the incoming buyer