Hilltop Retail Center

Property Overview

Hilltop Retail Center is a 15,084 SF multi-tenant retail center built in 2008 at 15610 Woodinville-Duvall Rd in Woodinville, WA, approximately 19 miles northeast of Seattle. The property includes nine suites plus a separate drive-through coffee stand ground leased to Mercurys Coffee, situated on 1.56 acres with roughly 325 feet of frontage along a well-traveled commuter route carrying 25,972 vehicles per day.

Challenge

Our team was engaged to sell a multi-tenant retail center on behalf of the original developer, while simultaneously representing the buyer completing a 1031 exchange. The property was 83% occupied at the time of sale, with 2,468 SF of vacancy remaining, which required prospective buyers to underwrite both the current income and the lease-up costs associated with stabilizing the asset. Balancing the interests of both parties in a dual-representation transaction added a layer of complexity to the negotiation.

Action

We marketed the property on-market, positioning the vacancy not as a liability but as a measurable upside opportunity. The investment materials demonstrated that upon stabilization and after lease-up costs were absorbed, an all-cash investor's yield would increase by approximately 100 basis points. We also highlighted the submarket fundamentals supporting that thesis: a 4% submarket vacancy rate, over 148,000 residents within a five-mile radius, and strong household incomes averaging nearly $93,000 annually. Throughout the process, we managed communication and negotiation between both sides, ensuring the seller's pricing expectations and the buyer's 1031 exchange requirements were addressed within the same transaction.

Result

• Sold the property for $4,600,000 ($305/SF) against an asking price of $4,750,000
• Represented both the seller (the original developer) and the buyer in a dual-representation transaction
• Facilitated the buyer's 1031 exchange requirement within the sale structure
• Closed with the property at 83% occupancy, preserving the buyer's ability to capture leasing upside post-close