Sherwin-Williams & Big 5

Property Overview

910 S Burlington Blvd is a 15,099 SF two-tenant retail center built in 1994, situated on a corner pad site adjacent to a Fred Meyer shopping center in Burlington, Washington. At the time of sale, the property was 100% occupied by Sherwin-Williams and Big 5 Sporting Goods on long-term leases.

Challenge

The seller needed to dispose of an outlier asset and redeploy capital in another sector, with the added complexity of completing a 1031 exchange on their end. The property also carried a vacancy representing approximately 33% of the building, which threatened to limit the buyer pool and complicate financing for any incoming purchaser. Finding a buyer who could close on a 1031 exchange timeline while the leasing gap remained unresolved required a deliberate approach.

Action

Our team brought the property to market as an exclusive on-market offering through Kidder Mathews, positioning the asset around its two credit tenants and its hard-corner location on Burlington Boulevard, the primary north/south commercial arterial in the trade area. To address the vacancy and broaden buyer appeal, we engaged the Kidder Mathews leasing team to secure a national tenant for the vacant space. Filling that space before close was critical to giving the buyer a fully occupied, financeable asset. We identified a 1031 exchange buyer and managed the transaction through to closing.

Result

• Leased the vacant space, representing approximately 33% of the building, to a national tenant prior to close, bringing occupancy to 100%
• Both the buyer and seller completed 1031 exchanges
• Sold at $4,100,000, or $272 per SF, against an asking price of $4,150,000
• The buyer closed within seventy days