BEND, Ore. – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sales of two retail properties at Bend River Village, a high-performing Petco-anchored shopping center in an affluent Bend, Oregon market. The fully occupied net-leased investments, which sold for a combined total of $12,175,000 and 26,824 square feet, were sold to two different 1031 exchange buyers in the execution of a break-up sale strategy at the center and resulted in record-low cap rates.
In the first transaction, a two-tenant retail pad occupied by Aspen Dental and America’s Best Contacts & Eyeglasses, totaling 7,051 square feet, sold for $5,375,000, (4.92% cap rate) representing a record-low cap rate for a multi-tenant pad over $5 million in the Pacific Northwest. The property, which is located on 0.77 acres at 3211 N. Highway 97, was previously occupied by an Applebee’s and was redeveloped in 2020 by the seller.
Hanley Investment Group’s Beau Velten, Jeff Lefko and Bill Asher, in association with ParaSell, Inc., procured a private 1031 exchange buyer from Newport Beach, California for the seller, a developer based in Sun Valley, Idaho.
“We procured multiple off-market offers from 1031 exchange buyers sourced from other Hanley Investment Group listings and achieved one of the lowest-cap rates for a multi-tenant retail pad in the Pacific Northwest,” said Velten.
In the second transaction, Petco and a freestanding, two-tenant retail pad occupied by Companion Pet Clinic and U.S. Cellular, which totaled a combined 19,773 square feet, sold for $6,800,000. The buildings were situated on a 2.3-acre parcel at 3197 N. Highway 97.
Hanley Investment Group’s Velten, Lefko, and Eric Wohl, in association with ParaSell, Inc., sourced a private 1031 exchange buyer based in Bozeman, Montana.
“We achieved a cap rate of 5.50%, representing a record-low cap rate for a Petco-anchored retail property in the Pacific Northwest despite Petco having one year remaining on its initial lease term,” noted Lefko. “Both Companion Pet and US Cellular had recently signed new leases.”
Velten adds, “By selling the individual parcels separately rather than selling the shopping center as a whole, we were able to realize over $1,500,000 in additional value for the seller. “The sum of the parts is greater than the whole’ continues to be an accretive sale strategy as the demand for retail net-leased investments priced under $10 million will experience the largest transaction velocity in the second half of 2022.”
In 2021, Hanley Investment Group sold more than 200,000 square feet of retail space in nine major shopping center break-up plays, many of which were single-tenant properties. In addition, the firm anticipates bringing at least 25 to 30 or more single-tenant and multi-tenant pad properties to the market by the end of 2022 as a result of implementing break-up sale strategies at multiple large shopping centers.
“Demand from 1031 exchange buyers for single-tenant and multi-tenant retail pad assets across the country has not let up, and we anticipate a busy rest of the year filled with on- and off-market transactions due to the lack of currently available inventory on the market,” Lefko added.
Bend River Village is shadow anchored by a new WinCo Foods that opened in February 2021 and the Bend River Promenade, which features Macy’s, T.J. Maxx, Hobby Lobby, Natural Grocers, Kay Jewelers, and others. Bend River Village also benefits from excellent exposure and visibility at the signalized intersection of NE Bend River Mall Drive and N Highway 97. Bend River Village is also within walking distance from the Riverhouse Convention Center and a number of hotels.
Bend, Oregon is the second-ranked mid-size city in the United States and is nationally recognized for its high quality of living and economic opportunity. Bend tops the list in job and business growth and has outpaced Portland as Oregon’s fastest-growing large city. River Bend Village is located near River West, Bend’s most affluent neighborhood, with an average household income of more than $102,000 annually in a one-mile radius. River West also boasts many cool breweries, specialty coffee houses, and hip spots for dining. The wooded Deschutes River Trail is known for hiking or mountain biking.
“The Pacific Northwest is a desirable place to live and has a flourishing economy,” said Velten. “When retail investments come available for sale in the region, they are highly sought after with multiple competitive bids. As a result, we expect to see the continuation of in-state and out-of-state private equity investing in the Pacific Northwest at premium pricing for the rest of the year and beyond.”
About Hanley Investment Group Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with over a $9.2 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties.