NEW PRICING | Royal Plaza | Seattle-Tacoma MSA
NEW PRICING | 8% Proforma Cap Rate | Royal Plaza | Multi-Tenant Retail | Seattle-Tacoma MSA
Marketing description
Kidder Mathews is pleased to exclusively present the opportunity to acquire Royal Plaza, a two-building multi-tenant retail center in Lakewood’s Koreatown at 8510-8534 S. Tacoma Way, Lakewood, WA.
The property consists of approximately 12,989-square-foot retail space situated on ±1.14 acre and is currently occupied by eight seasoned tenants, with one vacant unit offering lease-up upside for an investor or potential owner-user opportunity.
The center features a stable mix of foods and service tenants, with several shop spaces currently leased below market rates. This presents a compelling value-add opportunity through the lease-up of the existing ±3,000 square foot vacancy, future rent increases, and/or strategic re-tenanting. For investors seeking stable in-place income with meaningful NOI growth potential, Royal Plaza represents a rare opportunity that balances downside protection with upside potential.
Royal Plaza benefits from its proximity to Joint Base Lewis-McChord (JBLM), home of I-Corps and the 62nd Airlift Wing. JBLM is one of the largest military installations on the West Coast, supporting ±60,000 military and civilian personnel, contributing nearly $3 billion annually to the local economy, and serving over 254,000 residents in the surrounding area.
The property is surrounded by a strong roster of national and regional retailers, including H-Mart Supermarket, Pal-Do World Market, WinCo Foods, Lowe's, Safeway, Walgreens, Starbucks, McDonald's, Wells Fargo, and Chick-fil-A. This creates a high-traffic and synergistic retail corridor.
Positioned in the heart of South Tacoma submarket, this is one of most active retail corridors in Pierce County. Royal Plaza benefits from a dense and growing population base of more than 295,000 residents within a five-mile radius, with an average household income exceeding $99,000.
Investment highlights
Multi-Tenant Value-Added Shopping Center
- Value-Added Center - 6% Cap Rate on in-place income at 77% occupancy and 8% Cap Rate on proforma income
- Owner-User Opportunity – approximately 3,000 SF available for Owner-User opportunity
- Seasoned Tenant Base – All tenants have occupied the property for over 10 years providing income diversity with daily-use, service oriented, and necessity-based businesses.
- Koreatown Tacoma location – Strategically located adjacent to H-Mart, the largest Korean supermarket chain in the U.S.
- Out of State Ownership – First time on the market in over 20 years.
- Strong Infilled Location – Positioned in high traffic retail corridor with a diverse and stable economic base.
- High Barriers to Entry - Supply-constrained submarket with limited availability for new retail development.
Value-Add Investment with Income Growth Potential
- Below-Market Rents – Mark to market opportunity across shop spaces with annual rent increases.
- Lease Up Opportunity – Approximately 3,000 SF of vacancy provides immediate upside.
- Stable Cash Flow with Upside – Combines reliable in place income with near term growth potential.
- Compelling Risk Return Profile – Opportunity to capture both yield and appreciation in a high demand market.
Passive Ownership Structure
- Internet-Resistant Tenancy – Foods and Service tenants provide durable, needs based demand
- NNN Lease Structure - Minimal Landlord Responsibilities
- Staggered Lease Expirations – Allows flexibility and phased rent growth over time
Strong Pierce County Location
- Strong Regional Economy – Strong South Tacoma submarket, driven by Port of Tacoma, Joint Base Lewis-McCord and the manufacturing and tech Sectors.
- Proximity to JBLM – Approximately 58,000 military and civilian personnel, nearly $3 billion annual economic impact
Demographic & Co-Tenancy
- Established Retail Corridor – Surrounded by strong national retailers and dense and dense residential neighborhoods.
- Strong Local Base – Population exceeding 283,000 within 5 miles radius and average household income of over $110,000.
- Ideal 1031 Exchange Opportunity – Seasoned tenants, stable income, with value-add upside.
- Offered Free & Clear – Flexible for all-cash or leveraged buyers
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