Marking its first time on the market since it was constructed, the Seattle Hill Crossing shopping center in Snohomish sold to Che Investments LLC, associated with Unshik Che and Miran Che for $13.5 million in a deal that closed May 4th. Seattle Hill Crossing LLC, associated with Dobler Legacy Investments LLC, sold the center.
Seattle Hill Crossing, located at 13119 Seattle Hill Road, is a one-story 25,600 square foot retail center that was built in 2008 and sits on a 2.95 acre property. Parking is also offered at a rate of 4.92 stalls per 1,000 square feet.
The center is comprised of three separate buildings which are home to The Goddard School, Chase Bank and a number of smaller tenants including Real Mexican Grill, EJ Burger and Domino’s Pizza.
According to a flyer for Seattle Hill Crossing from AGM Commercial Real Estate and West Coast Commercial Realty, the site caters to the Silver lake and Mill Creek communities in addition to the over 5,000 homes in the surrounding neighborhood. The flyer also said that the developer of the property kept ownership and has managed the asset since development. This is the first time the property has been on the market, offering buyers an opportunity to be only the second owner. The property is currently 96 percent leased.
The shopping center has a number of long-term leases with 69 percent of the center having leases running through 2020 and over 40 percent leased through 2023, according to the flyer. A breakdown of the tenants show 20 percent is medical, 20 percent financial, 37 percent education and 18 percent service and restaurants.
The Goddard School, one of the major tenants of the property, had to get multiple state and local approvals and spend a significant amount of money on build-out which they say will ensure the school’s occupancy as a long-term anchor tenant, states the flyer.
The price of the property was advertised at $14,125,000 or $550 per square foot with a cap rate of six percent, but sold for $625,000 less. In terms of inflation, all tenants have rent increases averaging between two and three percent a year, according to the flyer.
This isn’t Unshik and Miran Che’s first purchase in the Greater Seattle Market. In March of this year, Unshik Che and Miran Che purchased a Red Lion Inn & Suites in Federal Way for $8.8 million or $97,778 per room.