Chase Bank Lynnwood

Property Overview

Located at 4001 Alderwood Mall Blvd in Lynnwood, Washington, this 10,235 SF retail property sits on a 0.86-acre signalized hard corner at the intersection of Alderwood Mall Parkway and 40th Avenue West. The site is comprised of two buildings: a 5,165 SF standalone Chase Bank with a two-lane drive-through, and a 5,070 SF retail building. The property carries City Center Core zoning, which allows for high-rise development up to 350 feet with a FAR of 10 under incentive zoning.

Challenge

Our team was engaged to sell a two-building retail portfolio in downtown Lynnwood anchored by a Chase Bank on a triple net lease, with a secondary building occupied by a furniture store and a dentist on month-to-month terms. The mixed tenancy created complexity: the Chase lease provided near-term income stability, but the month-to-month occupancies in the second building introduced uncertainty that could limit the buyer pool. At the same time, the property's redevelopment potential near the planned Lynnwood Link light rail extension required finding a buyer who understood both the current income and the longer-term land play.

Action

We marketed the property as a dual-purpose opportunity, positioning it for both income-focused investors and owner/users with a long-term redevelopment horizon. The marketing emphasized the Chase Bank's extended NNN lease, the site's visibility to more than 160,000 vehicles per day on Interstate 5, and the City Center Core zoning that permits high-density development. We also highlighted the proximity to the planned Lynnwood Link Extension light rail station, with construction scheduled to begin in 2018 and projected weekday ridership of 63,000 to 74,000 riders by 2035. This framing attracted buyers who could underwrite the month-to-month tenancy as a near-term vacancy risk offset by significant upside.

Result

• Sale price: $2,500,000 ($244/SF)
• The buyer acquired the property as a long-term redevelopment play tied to the light rail corridor
• The transaction closed with the Chase Bank lease in place through June 2020, providing income during the buyer's hold period
• Our team represented the seller in the on-market sale of the two-building portfolio