Kennewick Square

Property Overview

Kennewick Square is a 28,939 SF unanchored retail center built in 1980, located at 3321 W Kennewick Ave in Kennewick, Washington. The property is home to nine tenants and sits at the intersection of West Kennewick Avenue and South Morain Street, with 575 feet of frontage, 115 parking spaces, and three points of ingress and egress.

Challenge

Our team was engaged to sell a multi-tenant retail center in Kennewick, Washington on behalf of the seller. While the property was 100% occupied and generating stable income, the asset required careful positioning to attract qualified buyers in a market that can be overlooked by investors focused on larger metros. The goal was to run a competitive marketing process and identify a buyer capable of closing.

Action

We brought the property to market as an on-market listing, highlighting the stability of the tenancy and the strength of the trade area. Key points of emphasis included the property's full occupancy, the long tenure of its anchor tenant, Lutheran Community Services, which has occupied the property since 1994 and recently expanded by an additional 1,200 SF, and the fact that 73% of rent revenue comes from tenants with 15 or more years at the property. We also noted that 84% of rental revenue includes annual rent increases, providing income durability for prospective buyers. The marketing generated multiple offers, giving the seller the ability to select the most suitable buyer.

Result

• Represented the seller and generated multiple offers through a structured on-market campaign
• Sold the property for $3,400,000, or $117 per square foot
• Identified a 1031 exchange buyer, facilitating a clean transaction for both parties
• Delivered a result on a 1980-vintage, unanchored retail center in a secondary market by emphasizing occupancy stability and tenant longevity