By Jack Stubbs
Following shortly after Newport Beach, CA-based BKM Capital Partners’ $30.5 million acquisition of the five-building, 48,000 square foot West Valley Business Park in Kent, another retail property recently changed hands.
On October 1st, West Palm Beach, FL-based Sterling Organization, a company that invests in retail assets in major markets across the U.S., spent $17.5 million, or about $203 per square foot, to acquire a Safeway-anchored retail shopping center in Kent, King County records show. The seller of the property was Langston Landing LLC, an entity affiliated with Robert Cugini based in Renton.
The shopping center, located at 210 Washington Ave. S. and referred to as Langston Landing, totals 83,391 square feet, according to Sterling Organization’s web site. The property is well-positioned in a densely populated submarket with over 96,000 people living within a 3-mile radius of the property earning average annual household income of over $80,000. The complex is complemented by several national and regional businesses including Dollar Tree, Taco Bell, Cricket Wireless and Jackson Hewitt.
According to the property’s officespace.com listing, there were 1,100 square feet available within the shopping center as of February 2019.
Sitting adjacent to State Route 167, the property is roughly one mile from downtown Kent and the Kent Sounder Station, which connects the city with Seattle fifteen miles to the north.
Having long been regarded primarily as a hub for investment in industrial and manufacturing properties, Kent has in recent months seen significant side on the multifamily side as well. In early September, Los Angeles-based Decron Properties is continuing its expansion into the Puget Sound region by acquiring the 302-unit Indigo Springs Apartments from Beverley Hills, CA-based Kennedy Wilson for $78.8 million, or about $261,000 per unit.
At the end of September, San Diego, CA-based RedHill Realty Investment sold two adjacent apartment properties in Kent—the 168-unit RedHill Pines Apartments and the 70-unit StoneCreek Apartments—for a combined $34.5 million from Latigo Management Inc.
Marking another statement of intent for Kent’s multifamily market, RISE Properties Trust in early June announced its purchase of the 198-unit Bryson Square Apartments located at 24006 108th Pl SE for $43.25 million.
Nationally, Sterling Organization and its principals own more than 10 million square feet of retail and other commercial real estate assets worth around $2 billion in value, according to the company’s web site. Sterling Organization’s other property in the Pacific Northwest is Elliott Plaza, a 50,678 square foot shopping center near downtown Seattle.