Marineland Retail Center

Property Overview

Marineland Retail Center is a three-building, 50,913 SF retail center situated on a 4.75-acre parcel at 5215 Clearwater Ave in Kennewick, WA. Built in 1987, the center occupies a signalized corner with frontage along Clearwater Avenue, which carries more than 20,000 vehicles per day.

Challenge

Our team was engaged to sell a retail center on behalf of a special servicer, a circumstance that introduced constraints on pricing, process, and timeline that a conventional sale would not carry. At the time of marketing, the property was approximately 76% occupied, leaving roughly 34% of gross leasable area vacant. Average in-place rents were running approximately 20% below market rates, which compressed current income and narrowed the pool of buyers willing to underwrite the asset without significant upside assumptions. The assignment required a disposition method that could surface qualified buyers quickly and generate competitive interest despite the occupancy and income gaps.

Action

Given the special servicer context and the need for a defined, transparent process, the property was offered through an online auction. Our team prepared marketing materials that clearly presented the current income profile alongside the stabilized upside, giving prospective buyers the data needed to underwrite both the as-is condition and the value-add potential. Property tours were organized in advance of the auction date to allow interested parties to conduct on-site due diligence. The auction format established a firm timeline and a public starting bid, which helped focus buyer attention and encouraged competitive participation.

Result

• The property sold at auction for $3,250,000 ($64 per SF).
• The auction process delivered a completed transaction for the special servicer, resolving the asset through a structured, court-compatible disposition.
• The outcome provided the special servicer with liquidity and a clear path to close on a property carrying meaningful vacancy and below-market rents.