Intercontinental Real Estate Corporation has acquired Lakeland Town Center, a 125.2k sf grocery-anchored retail center located in the Seattle/Tacoma suburb of Auburn, WA, for $69.5 mil ($555/sf).
Built in 2002, Lakeland Town Center is situated on a 12.61-acre site at 1402 Lake Tapps Pkwy SE, in the commercial heart of Lakeland Hills, an affluent master-planned community 25 miles south of downtown Seattle. The center serves a trade area of approximately 52,000 households with an average household income exceeding $183,000. This affluent demographic generates substantial disposable income, directly supporting the center’s strong and vibrant retail environment.
The property, which consists of both pad and inline retail supported by 704 parking spaces, also benefits from frontage along Lake Tapps Pkwy E. with more than 16,000 vehicles passing the property each day.
Lakeland Center is 100% leased and is anchored by Haggen Northwest Fresh, a premium regional grocer and the only full-service grocer serving the Lakeland Hills and Lake Tapps trade area. The property’s tenant roster pairs the Haggen anchor with a deep bench of restaurants and essential local services including Subway, Hops N Drops, Rock Wood Fired Pizza, Puerto Vallarta Mexican, Sushi Konami, Ichi Teriyaki, Legendary Doughnuts, Nekter Juice Bar, and Menchie’s, Pacific Cataract and Laser Institute, Gentle Dental and Orthodontics, Outpatient Physical Therapy, Edward Jones, McDonald’s, Wells Fargo, UPS Store, Orangetheory Fitness, and Club Pilates.
Intercontinental plans to execute a targeted capital program focused on roof lifecycle replacement and as-needed upgrades as tenants rollover, alongside a leasing strategy centered on preserving and strengthening the center’s daily-needs tenant mix. Intercontinental intends to maintain a balance of dining, fitness, medical, and neighborhood services so that Lakeland Hills and Lake Tapps residents continue to have their everyday amenities within walking and short driving distance of home.
“Lakeland Town Center is the dominant daily-needs destination in a captive, high-income trade area, supported by a top-performing grocery anchor and one of the tightest retail submarkets in the Seattle metro,” said Jessica Levin, Managing Director, West Coast and Associate CIO at Intercontinental. “With retail vacancy in East Pierce County at 2.4% and effectively no new supply under construction, we believe the Property is positioned to deliver durable cash flow over the long term.”
Retail fundamentals in the East Pierce County submarket remain among the tightest in the region at 2.4% vacancy rate against a 3.0% ten-year average, with no space currently under construction and only 13,000 square feet proposed over the next eight quarters. The submarket’s neighborhood center segment has seen no new deliveries since 2020.
Geoff Tranchina, Gleb Lvovich, Dan Tyner, and Tess Berghoff with JLL Capital Markets marketed the property on behalf of the seller.
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