Why Investors Are Eager For Strip Centers

Photo credit: Phil Voorhees

Lincoln Plaza, an 80k SF shopping center in Tacoma, has traded hands for more than $26M. CBRE EVP Phil Voorhees tells us the CMBS financing upheaval at the start of the year reduced the buyer pool for non-grocery anchored shopping centers. "Strip retail centers like Lincoln Plaza are a perennial favorite for our team, and a bona fide opportunity in this market."

The current spread between cap rates and interest rates makes now an exceptional time for investors using prudent leverage to acquire strip centers, Phil adds. "The Lincoln Plaza buyer is a sophisticated operator with excellent market knowledge and a creative business plan.” (Phil's shown with his sons buying a Christmas tree...wait, is it spring already?)

Photo credit: CBRE

The property is about 95% occupied, and at $330/SF, it "sets a high-water mark for an unanchored center of its size in the Pacific Northwest," Phil says.

The seller was SoCal-based Passco Cos, while the buyer was a private partnership based in the Pacific Northwest. Phil, along with colleagues Brad Rable, Megan Wood, Matt Burson, Jimmy Slusher, Todd Goodman and Preston Fetrow, in partnership with Dino Christophilis of CBRE’s Seattle office, repped the seller. The buyer repped itself.

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