By Jack Stubbs
In late June 2019, in a transaction that was recently recorded, global investment management firm Fortress Investment Group based in New York (through an LLC called CF Albert PropCo) acquired a Safeway property in Everett, Snohomish County records show. The seller was Safeway, Inc. based in Pleasanton, California.
The subject property, located at 11031 19th Ave. SE, includes a Safeway property which sits on 4.87 acres, according to public documents. Originally built in 1979, the commercial property totals roughly 45,700 square feet across two stories.
The Safeway property is about six miles south of downtown Everett Via Interstate-5 and about three miles east of Paine Field Airport. The property is also approximately two miles from Everett Mall located at 1402 SE Everett Mall Way, which is a 673,000 indoor/outdoor shopping complex originally built in 1969.
Founded in 1998, Fortress Investment Group manages assets on behalf of over 1,750 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies, according to the company’s web site. As of March 31st, 2019, the company had approximately $39.2 billion of assets under management.
Fortress Investment Group’s capture of the Safeway in Everett comes just a couple of months after the company purchased another Safeway property in Tacoma. In late June, Fortress spent $10.6 million to acquire a four-parcel commercial property, the site of another Safeway, in the Proctor District of Tacoma.
There have been several transactions involving retail-anchored shopping centers across the Puget Sound region in recent weeks. On September 12th, the 67,144 square foot Covington Place Shopping Center sold for $25 million or roughly $372 per square foot, with Colorado-based TD Commercial Investments LLC acquiring the property from Renton, WA-based Ashton Capital Corporation.
Covington Place Shopping Center was initially developed by Ashton Capital Corporation in 1999, just after Covington became a new city in 1996, according to a statement released by First Western Properties, who represented the seller in the transaction. Ashton Capital Corporation worked directly with the city to develop a first-class shopping center and a long-term home for the Covington’s City Hall.
Elsewhere, in the Northgate neighborhood in Seattle, Indianapolis-based Simon Property Group has plans in the works to redevelop Northgate Mall into a 1.3 million square foot mixed-use development that will ultimately include roughly 1,200 residential units, 596,600 square feet of retail space, 768,800 square feet of office space and 372 hotel units across two hotels within the 33-acre master-planned development site, as well a significant amount of public open space.
A re-envisioning of Northgate Mall—a retail destination which originally opened in 1950—has been in the works for the last several decades: the mall was expanded in 1965, but efforts made by DeBartolo Properties in the 1980s for further expansion of the retail complex were unsuccessful.
Marking the latest chapter for the Northgate Mall overhaul, in late February 2019, the Northeast Design Review Board approved the Northgate Mall streetscape and plans for the public- and open-space components of the project, which include new streets, pedestrian corridors and public spaces.