San Francisco-based Merlone Geier Partners has been an active buyer and seller of retail properties in the Puget Sound region, and its latest is the purchase of The Commons, a 618,000 square foot shopping mall located in Federal Way at 1928-B South Commons. Merlone Geier paid $46.5 million for the asset, which was previously owned by Los-Angeles-based Canyon Capital Advisors.
King County public records show $588,564 was deducted in personal property resulting in a taxable selling price of $45,911,436. Public records also list individuals at Steadfast Companies as being involved in the sale.
Merlone Geier’s Web site already lists the mall as part of its portfolio. The retail center features Target, Dicks Sporting Goods, Century Theaters, Sears and Kohl’s, among others. Included in the sale of the Commons Mall at Federal Way is a Macy’s Department Store, as well. The retailer occupies a 141,256 square foot property which was built in 1977. This store is not on the list of stores that the national chain has announced it would be closing this year.
While some retail operators have been re-evaluating their shopping mall portfolios, Merlone Geier has been on an acquisition spree. It January of 2017 it spent $170 million to acquire two properties from Santa Monica-based Macerich. One of the properties was the Cascade Mall in Burlington, WA.
Merlone Geier Partners is a private real estate investment company focused on the acquisition, development and redevelopment of retail and retail-driven mixed-use properties on the West Coast. The firm has been actively investing in West Coast retail property since 1993, acquiring to date 144 properties representing over 24.5 million square feet, according to a statement from the company. The firm recently raised its twelfth fund, with committed equity capital of $1.14 billion.