Jantzen Beach Center (courtesy of HFF)
HFF announced the closing of a $132 million deal for one of the largest open-air retail centers in Oregon. The 67-acre Jantzen Beach Center on Portland’s Hayden Island was purchased by Kimco Realty Corp., clear of any existing debt. Portland’s dominant shopping destination has thrived in recent years and, according to the buyer, the mall was 96% leased at the time of purchase.
The center serves a primary trade area that extends over 10 miles, and Oregon’s sales tax-free economic environment attracts visitors from more than 70 miles away. The variety of national and regional retailers includes Home Depot, Target, TJ Maxx, HomeGoods, Ross Stores, Burlington, Petco, Best Buy, DSW, Michaels, Famous Footwear and Stanford’s Restaurant. Jantzen Beach is Kimco’s eighth property in the Portland-Vancouver-Hillsboro MSA, a market where the company also maintains a regional office. Kimco owns interests in 510 U.S. shopping centers comprising 84 million square feet of leasable space across 32 states and Puerto Rico.
Ross Cooper, president and chief investment officer with Kimco, stated: “Jantzen Beach is a flagship asset located in a coastal, in-demand market with significant barriers to entry. This asset exemplifies a key component of our strategic 2020 Vision to upgrade the quality of our portfolio with selective acquisitions funded by disposition proceeds.” The company statement added that this purchase could also allow for the development of two 6,000-square-foot pad buildings, as well as “mixed-use densification opportunities,” supported by flexible zoning.
HFF marketed the property on behalf of the seller, South Carolina-based Edens. Nick Kassab of HFF explained: “Jantzen Beach Center is the largest open-air center in the state and one of the top shopping destinations in Portland, benefiting from a vast trade area. Strategically located on the Oregon/Washington border and with an impressive list of high-quality retailers, the center pulls customers from the nine-percent-sales-tax state of Washington into the no-sales-tax state of Oregon. Given that opportunities to acquire a top-performing center of this size and scale in the Pacific Northwest are few and far between, the sale received significant interest from institutional investors across the country.”
Jantzen Beach Center (courtesy of HFF)
