Stallion Hill Center

Property Overview

Stallion Hill Center is a 35,992 SF mixed-use investment property in Woodinville, Washington, approximately 25 minutes north of Seattle. The asset comprises four buildings on two tax parcels: three multi-story office buildings and a freestanding single-tenant restaurant building occupied by Italianissimo Restaurant since 2001. The main office building is fully sprinklered, includes an elevator, and features an underground parking garage.

Challenge

Our team was engaged by a long-term owner and developer to sell Stallion Hill Center, a property they had held and managed since its development. The assignment required finding a buyer who could appreciate the complexity of a mixed-use asset with multiple income streams across office and restaurant uses, and who could underwrite a portfolio of gross leases with the potential to convert them to NNN over time. Conveying that nuance to the investment market while achieving a price that reflected the seller's years of stewardship was central to the assignment.

Action

We brought the property to market as an on-market offering, positioning it around its 100% occupancy, the strength of the Woodinville submarket, and the asset's long-term tenant stability anchored by Italianissimo Restaurant. Key points of emphasis in our marketing included:

• The property's free-and-clear debt structure, giving a buyer full flexibility on financing
• Woodinville's 3.4% submarket vacancy rate and above-average household income demographics
• Traffic counts of 25,972 vehicles per day on Woodinville-Duvall Road
• The upside available through converting existing gross leases to NNN over time

We targeted investors seeking stable, income-producing mixed-use assets in the Puget Sound market and worked to qualify buyers capable of underwriting the office and retail components together.

Result

• Sold Stallion Hill Center for $6,300,000, or $175 per SF
• Achieved a fully occupied sale with all four buildings leased at close
• Delivered a successful exit for a long-term owner and developer who had held and operated the asset since its development