Pinnacle Announces the Sale of Pacific Northwest’s Highest Priced Single-Tenant Retail Property
Pinnacle Real Estate Advisors, LLC is pleased to announce the sale of a single tenant Lowe’s Home Improvement Property located in Mount Vernon, Washington for $16,991,453. This transaction, completed by the Edwards Ethington Team, represents the highest priced single-tenant retail sale for the last two years in the Pacific Northwest, according to CoStar. Mount Vernon is located approximately sixty miles north of Seattle and 80 miles south of Vancouver.
The 137,472 square foot Lowe’s property was initially constructed in 1993 and recently renovated earlier this year. The property is strategically positioned at a signalized intersection along Interstate 5, which experiences traffic counts in excess of 75,000 vehicles per day. The Lowe’s is further benefitted by its location within a regional retail destination that includes Walmart Supercenter, Safeway, Costco, Kohl’s, Burlington Coat Factory, Dick’s Sporting Goods and many other national retailers.
There are approximately 10 years remaining on the recently extended Lowe’s lease. The triple net lease features rental escalations every five years and no landlord responsibilities. Lowe’s is a Fortune 100 company and is publicly traded (NYSE: LOW) with a market capitalization in excess of $70 billion. Lowe’s is an investment grade rated company with a Standard and Poor’s rating of A-.
Pinnacle Principals Tom Ethington and Rob Edwards represented the purchaser, which was a Colorado-based private family office. The seller was a Washington real estate investment company represented by Stan Johnson Company.
“This property offered the purchaser a rare combination of investment grade credit, rental escalations, a long-term lease, a proven location and an e-commerce resistant business model,” explained Ethington.
“Properties with long and proven operating histories and new lease extensions are highly sought after amongst investors. These types of properties offer an investor the best of two worlds; a long-term lease as well as an established customer base,” added Edwards.