Verizon/Aaron's Retail

Property Overview

The Verizon/Aaron's Retail Center is a two-tenant, 11,036 SF retail strip center built in 2013 and situated on the corner of Fleet Street and Highway 12 in Aberdeen, Washington. The property is 100% leased to Aaron's, Inc. and an authorized Verizon Wireless dealer operating more than 750 locations across the United States. Both tenants have occupied the building since it was constructed, and both leases include scheduled rental increases under a NNN structure that limits landlord responsibility.

Challenge

Our team had originally sold this property when it was built, and after a ten-year hold the seller decided to exit the investment. The assignment was to find a qualified buyer for a single-asset retail center in a smaller coastal Washington market. A key complication arose during the transaction: the buyer's lender required an estoppel certificate and a Subordination, Non-Disturbance, and Attornment (SNDA) agreement from the tenants, adding a layer of coordination that needed to be managed carefully to keep the deal on track.

Action

We brought the property to market as a fully occupied, NNN-leased investment with a straightforward landlord responsibility profile. Key attributes we emphasized to prospective buyers included:

• 100% occupancy with both tenants in place since construction
• Contracted rental growth built into both leases
• High-traffic corner location with daily traffic counts exceeding 21,000 trips on Highway 12
• NNN lease structure with tenants responsible for real estate taxes, insurance, and CAMs
• Washington State's lack of a personal state income tax for investors

Once a buyer was identified, we coordinated the negotiation and execution of the estoppel certificate and SNDA agreement with both tenants on behalf of the transaction, satisfying the lender's requirements and allowing the financing process to move forward.

Result

• Sold for $2,600,000, or $236 per square foot
• Property was 100% occupied at closing with both original tenants in place
• Successfully negotiated tenant estoppel and SNDA to satisfy lender requirements
• Completed the sale to a local buyer, continuing the property's history of stable occupancy and ownership