Mud Bay - Lacey Crossroads

Property Overview

Located at 5500 Corporate Center Lane SE in Lacey, Washington, this 4,988 SF standalone retail building was built in 2008 and occupied by Mud Bay under a triple net lease. The property sits within Lacey Crossroads, a retail corridor shadow anchored by a 160,000 SF Lowe's Home Improvement Store and surrounded by national and regional tenants including Taco Bell, Starbucks, and Inspire Physical Therapy.

Challenge

Our team was engaged to handle the sale of a single-tenant Mud Bay in Lacey, Washington, representing both the buyer and the seller. The assignment required finding a buyer who understood the Mud Bay tenancy and saw value in a lease with approximately 8 years remaining on the initial 10-year term, along with a structured rent growth schedule and multiple option periods beyond expiration.

Action

We marketed the property as an on-market sale, positioning it around the lease fundamentals that made it an attractive net lease investment. Key points we communicated to prospective buyers included:

• A triple net lease structure with minimal landlord responsibilities
• 10% rent increases scheduled in June 2022 and at each option exercise
• 10 years of option periods following the initial lease term
• Mud Bay's regional presence, with over 50 locations across Washington and Oregon, 34 of which opened in the prior 10 years
• Strong co-tenancy at Lacey Crossroads, anchored by Lowe's and supported by national retailers

Because our team represented both parties, we were able to facilitate direct communication throughout the transaction and keep the process moving efficiently.

Result

• Sold for $2,100,000, or $421 per SF
• 100% occupancy at close
• Represented both the buyer and the seller
• Triple net lease in place with approximately 8 years remaining on the initial term and 10 years of options beyond expiration