Shops at Burlington

Property Overview

The Shops at Burlington is a 185,230 SF retail outlet center located at 448 Fashion Way in Burlington, Washington, approximately one hour north of Seattle. The property consists of four retail buildings on a 19.09-acre site across three parcels, all with frontage on Interstate 5. Built in 1990, the center is zoned C-1 Commercial District, which permits a wide range of uses including mixed-use, multifamily, office, hospitality, and retail.

Challenge

Our team was engaged by a special servicer to market and sell a distressed retail outlet center that was only 28.6% occupied at the time of sale. With the majority of the building vacant, traditional financing was not a realistic path for most buyers, and the pool of qualified purchasers was limited to those who could underwrite the redevelopment risk and move quickly. The assignment required managing a process that could produce a credible, executable offer on a large, underperforming asset.

Action

We ran an on-market campaign that positioned the property around its redevelopment potential rather than its current income. The marketing emphasized the site's scale, its favorable C-1 zoning, and its 900-plus lineal feet of Interstate 5 frontage midway between Seattle and the U.S./Canada border. We targeted buyers capable of assessing the vacancy risk and executing without a financing contingency, then managed multiple offers through to a final selection.

Result

• Sold the 185,230 SF center for $9,500,000 ($51/SF)
• Managed multiple offers on a distressed, largely vacant asset
• Identified an all-cash local buyer able to close on a short feasibility and closing timeline
• Delivered a clean execution for the special servicer client