SEATTLE – May 20, 2020 – CBRE announced the $4.15 million sale of a ground-leased McDonald’s restaurant located at 34814 Pacific Highway South in Federal Way, Wash. Dino Christophilis in CBRE’s Seattle office represented the seller, Fana Group of Companies from Bellevue, Wash. An undisclosed buyer purchased the property in a sale that closed May 5.
“This was the first ground-leased McDonald’s offered for sale in the Pacific Northwest in several years. Even during a troubled macro-economic environment, this opportunity was highly sought after,” said Dino Christophilis, Senior Vice President, National Retail Partners, CBRE. “The site benefits from the long-term anticipation of light rail terminal entering the market only three blocks from the property.”
A ground lease, also known as a land lease, is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the improvements may then be turned over to the property owner.
McDonald’s operates a 4,660-sq.-ft. restaurant on the property, which it built in 2007. The site, which totals 35,622 sq. ft. of land, is located at the corner of Pacific Highway South and South 348th Street. The city of Federal Way recently completed a road-widening and improvement project along Pacific Highway (Hwy 99). The project expanded the five-lane highway to six lanes by adding a dedicated right-turn lane directly in front of the property, resulting in 95,000 vehicles passing the site daily. The location is 5 miles from Tacoma, 14 miles from Seattle and 20 miles from Bellevue.
In 2016 voters approved Sound Transit 3, which will expand the light rail network from the northern-most connection points in Seattle to Tacoma in the south. The first phase will be completed by 2024 and will extend to 320th Street (just north of the property). The second phase of the project will include a new station along 348th Street, three blocks from the McDonald’s Federal Way restaurant. The second phase is already funded and projected to be completed by 2030.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.