Riverton Heights Shopping Center

The Riverton Heights Shopping Center in Tukwila, Washington, is a 33,745-square-foot retail center on 3.65 acres. Bartell Drug serves as the anchor tenant, accompanied by three in-line tenants. A separate corner parcel is occupied by a stand-alone Jack in The Box. Additionally, the offering included two parcels zoned for multi-family development, amounting to 39,000 square feet.  The immediate trade area was experiencing significant growth and development:

• A new Regional Justice Center
• Transportation Upgrades: The Bartell Center is just a mile north of the Light Rail and Metro Express Link stops
• Tukwila Village: Directly across from the Bartell Center, Tukwila Village is a new development featuring a regional King County Library, a mini-food hall, retail spaces, live/work units, and 398 apartments, primarily for seniors.
• Numerous multi-family developments planned or in process

Challenge

The existing owner had obtained a development agreement to build a 46-unit apartment complex that included 4,634 square feet of commercial space on the excess development land. However, due to restrictions in the underlying CMBS loan, the owner could not move forward with development.

Action

Our team targeted local investors familiar with the growth in the Tukwila/Seatac submarket with a goal of “land banking” the site for redevelopment once the restrictive covenants of the underlying debt were removed.

Result

Our team successfully pinpointed local investors interested in land banking opportunities. We connected with a local buyer who has strong connections to the Somali and Ethiopian communities in Tukwila and is well-acquainted with the tenant businesses in the center. This investor purchased the property and assumed the existing CMBS loan. They have since made substantial enhancements to the center and are planning a mixed-use redevelopment project slated for 2027.

Testimonial

"Erik and Mike orchestrated every phase of a complex CMBS loan assumption process, ensuring seamless execution from start to finish. Their attention to detail, coupled with their commitment to meeting an extensive list of closing conditions within a stringent timeline, was impressive. Their team's expertise led to an on-time and successful closing.”

Teddy Kassa

Buyer