Clarion Grabs 187 KSF Washington State Retail Center
- Jan 31, 2012
January 31, 2012
By Nicholas Ziegler, News Editor
Capitalizing on what will likely be a strong year for retail, Clarion Partners has acquired a 187,000-square-foot shopping center in Covington, Wash., for $31 million. The purchase was made on behalf of one of the firm’s clients.
“Covington is a highly desirable, family-oriented town with strong employment and household growth,” Stephen Latimer, a managing director at Clarion, said. “With its outstanding list of tenants and attractive location, the center is well positioned to take advantage of the expanding retail sales and improving economic fundamentals anticipated for the area.”
According to a third-quarter 2011 report by services firm Marcus & Millichap Real Estate Services Inc., Latimer’s sentiments are correct. Leasing velocity has been increasing rapidly in the entire Seattle-Tacoma market, with core areas leading the way but with suburban locations also seeing the benefits of growth. “In the past 12 months,” the report noted, “institutional and high-net-worth buyers resumed multi-tenant acquisitions, targeted core-anchored centers.” The area’s addition of 48,000 jobs through 2011 – led by the tech sector – increased payrolls by an average of 2.9 percent.
The shopping center is 98 percent leased, and Home Depot serves as the anchor tenant. Other tenants include Bank of America, Verizon Wireless, UPS, International House of Pancakes, and Remax, as well as numerous local businesses. Annual income averages over $90,000 within five miles of the property. In addition to the center, Covington is home to a number of national retailers, and acts as a retail hub for the surrounding region. New construction in the area is generally limited by high design standards and a lack of developable land parcels.