By Jack Stubbs
Following on its capture of two shopping centers in Gig Harbor and Covington for a combined $110 million last week, the California-based company has made another acquisition, signaling its continued expansion in the Puget Sound region.
On Tuesday, March 13th, Costa Mesa, California-based Donahue Schriber acquired the Safeway-anchored Lakeside at Canyon Park shopping center in Bothell for $31.9 million, or approximately $350 per square foot, Snohomish County records show. The seller of the shopping center—the same entity who sold the two shopping centers last week—was Terramar Retail Centers, another California-based company. The transaction was recorded on March 20th.
The shopping center, located at 24040 Bothell-Everett Hwy, totals 91,048 square feet, according to Terramar’s web site, and is anchored by a Safeway. The shopping center also includes several other commercial tenants that occupy approximately 39,700 square feet, according to public records. Some of these include a Safeway-affiliated gas station, Ultra Custom Cleaners, Key Bank, as well as several other restaurants, according to Google Maps.
The shopping center is located along the Bothell-Everett Highway and is approximately two miles to the north of downtown Bothell and roughly three miles to the north of Woodinville. Additionally, the complex is less than a mile south of Canyon Park Place—a property also operated by Donahue Schriber—which is an approximately 125,600 square foot shopping complex anchored by a QFC market and also located along the Bothell-Everett Highway. Additionally, the property is approximately two miles from access to Washington State Route 522 and about one mile from access to Interstate-405.
According to Terramar’s web site, the property has strong demographics for its location. In Bothell, there is a population of 258,352 within a five-mile radius, with an average annual income of $96,976 within a five-mile radius. The workplace population within this same radius is $136,975.
Donahue Schriber is an active owner and developer of retail shopping centers on the West coast, focusing primarily on the California market. Some of its recent acquisitions in California include Westgate West, a 233,813 square foot community center in San Jose; Marigold Center, a 174,428 square foot neighborhood shopping center in San Luis Obispo; and Diamond Heights, a shopping center in San Francisco that totals 75,630 square feet., according to the company’s web site.
The company’s investment strategy includes acquiring anchored centers with a minimum GLA of 75,000 square feet and a minimum value of $15 million. Donahue Schriber is interested in anchored retail centers, including neighborhood, community and power centers, with a preference for grocery-anchored projects.
In November of 2017, the company received a $200 million equity investment from institutional investors advised by J.P. Morgan Asset Management and from New York State Teachers’ Retirement System (NYSTRS). Each has provided $100 million in capital planned to fund acquisitions and redevelopments focused on grocery-anchored shopping centers in high barrier to entry markets from San Diego to Seattle.
And the company made the news in the Puget Sound market late last week with its acquisition of two other shopping centers in Pierce County for a combined $110 from Terramar Retail Centers. The company acquired the Point Fosdick Square in Gig Harbor a 183,898 square foot shopping center anchored by Safeway, Kohl’s and Michael’s, and located at 4831 Point Fosdick Dr. NW. Donahue Schriber paid $68,113,631, or just over $370 per square feet, for the property.
In Covington, the company paid $42,290,300, or $279 per square foot, to acquire the 151,563 square-foot Covington Square Shopping Center located at 17023 SE 272nd Street and anchored by Safeway and other retailers.
The seller of all three shopping centers, Terramar or TRC Retail, is a company that owns, develops and operates shopping centers across the Western U.S. The company recently sold another retail center in January of this year: the company sold the 214,834 square-foot Fairwood Shopping Center in Renton to Bethesda, Maryland-based First Washington Realty for $77.5 million.