By Meghan Hall
Seattle-based Goodman Real Estate has closed on a deal to purchase a retail asset in rapidly growing Tacoma. In a transaction that closed April 5th, the firm paid $14MM for Tacoma Marketplace. The seller, according to public documents, is San Francisco-based Merlone Geier Properties.
The asset is located at 5132 Sixth St. CommercialCafe data indicates the size of the property is 10.6 acres and is developed with a 104,758 square foot building constructed in 1967. CommercialCafe’s data also shows that the retail center is surrounded by strong demographics, with the average household earning more than $100,000 annually.
“This low-density opportunity is extremely rare in the Puget Sound,” states marketing materials for the property. “Minutes from downtown Tacoma and some of the South Sound’s most affluent communities this site provides an attractive opportunity for developers looking to create scale in the greater Seattle region.”
The area surrounding the property is a mix of single-family and commercial. Retailers like Goodwill, Les Schwab Tire Center and Sonic Drive-In are all in the immediate vicinity. The Titlow Beach Marine Preserve is a short drive away, as is downtown Tacoma.
If developed, the acreage could accommodate 408 residential units, and the market would support a mix of studios, one-, two- and three-bedroom units. Units could command rent of about $1,847 per unit or $2.11 per square foot.
Goodman Real Estate specializes in multifamily housing and commercial real estate, making the property an ideal opportunity for the firm. Its assets are valued at more than $2.5 billion, and the firm’s portfolio includes risk-adjusted investments, multifamily construction, office and retail, among others. The company focuses on middle market assets in the $25 to $100 million range.
The company currently owns a number of multifamily assets in the region, including the Bellamy Park Apartments in Tacoma, Canvas in Seattle and The Aviator Apartments in Renton, Wash.