Petco/Grocery Outlet Stanwood

Property Overview

Port Susan Marketplace is a 28,409 SF, two-tenant retail center located at 27008 90th Ave NW in Stanwood, Washington, built in 2016. The property is anchored by Petco (11,250 SF) and Grocery Outlet (approximately 17,200 SF), each operating under 10-year triple net leases with scheduled rent escalations and multiple renewal options.

Challenge

Our team was engaged by the developer to sell a newly constructed, two-tenant retail center while the building was still under construction and tenants had not yet opened for business. The assignment required finding a qualified buyer willing to close on an asset where both Petco and Grocery Outlet were in the process of taking possession, with neither store yet open. Selling during this window meant buyers had to underwrite the leases and the construction timeline rather than an operating property with an established track record.

Action

We marketed the property on behalf of the developer, targeting investors seeking newly constructed, triple net leased retail with national tenants and minimal landlord responsibilities. The offering was positioned around the strength of the two long-term leases, the property's visibility to nearly 18,000 vehicles per day along State Route 532, and its location within an established retail corridor that includes QFC, AutoZone, Starbucks, and Jack in the Box. We identified a buyer completing a 1031 exchange and guided both the seller and buyer through the transaction, representing both parties to a successful close.

Result

• Sale price of $8,300,000, against an asking price of $8,325,000
• $292 per square foot
• 100% occupancy at the time of sale
• Both tenants operating under new 10-year triple net leases with built-in rent escalations
• Swanson King represented both the seller and the buyer in the transaction
• Buyer completed a 1031 exchange