Market/Sub-Market: Tacoma, WA / Puyallup, WA
Total Bldg SF: 127,429 SF
Purchase Price: $29,375,000
Key Tenants: Grocery Outlet, Michaels, Starbucks, Heritage Bank, AT&T
Quest Capital Partners in partnership with Hyperion Realty Capital is pleased to announce its recent acquisition of Meridian Shopping Center, a 127,429 SF grocery anchored shopping center approximately 10 miles east of Tacoma, Washington.
This asset represents a tremendous value-add play in a solid retail sub-market. The value-add strategy includes leasing up remaining vacancy, remodeling the facade, upgrading the pylon-sign to improve curb appeal and potentially selling off one or more of the existing pads.
At closing, the property is cash flow positive in spite of only 70% occupancy. Per our local brokerage team the leasing market is strong, demonstrated by a new signed execution for 11k SF by a veterinary tenant.
“It’s rare to find a core-plus grocery-anchored shopping center with massive upside, pad sale opportunities and solid in-place cash flow. We were fortunate to find an ownership group that did not understand how to maximize this asset. The sub-market fundamentals are all indicative of excellent asset performance for years to come.”
— Ken Leon, Principal of Quest Capital Partners
Over a 4-year hold the projected return is over 19% net investor IRR and 1.8x equity including an average cash on cash of over 8.5% per year.
Quest Capital is a boutique real estate investment firm focused on value-add investment property throughout the western region of the US. Visit quest-capital.com for more information on or email us at investments@quest-capital.com.