The Shops at Island City
GROCERY OUTLET ANCHORED RETAIL INVESTMENT IN LA GRANDE, OR AREA
Marketing description
Northmarq is pleased to present the opportunity to acquire Shops at Island City, a Grocery Outlet anchored retail center located in Island City, Oregon, immediately adjacent to La Grande. The Property is anchored by a high performing Grocery Outlet Bargain Market, which serves as the only location within a 40-mile radius, positioning it as the primary discount grocer for the broader regional trade area. In addition, the offering includes ±1.77 acres of IC-C1 zoned surplus land directly north of Grocery Outlet with frontage along Island Avenue, included at no allocated basis and offering meaningful new development potential.
The Grocery Outlet building was constructed in 2007 and is secured by a long-term lease through May 31, 2033, providing stable and predictable cash flow. The anchor drives consistent consumer traffic and serves as the economic foundation of the Property. Grocery Outlet’s in-place rent of $13.85/SF NNN sits below market, supporting strong rent coverage and embedded upside at renewal or option exercise. The Offering also includes a second building constructed in 2013, occupied by Grande Ronde Hospital Urgent Care and Family Resource Home Care. The healthcare tenancy adds daily traffic and further diversifies the rent roll.
Situated on ±4.6 acres with frontage along Island Avenue (Wallowa Lake Highway) and Walton Road, the Property benefits from combined traffic counts exceeding 22,000 vehicles per day and excellent accessibility.
Investment highlights
• GROCERY OUTLET ANCHORED WITH LONG-TERM STABILITY: The Property is anchored by Grocery Outlet Bargain Market with a lease in place through May 2033, providing durable cash flow backed by a nationally recognized discount grocer
• BELOW-MARKET ANCHOR RENT: Grocery Outlet pays $13.85/SF NNN, providing strong rent coverage, low rollover risk, and embedded mark-to-market upside at renewal or option exercise (10% bump)
• ESTABLISHED REGIONAL DRAW: Grocery Outlet serves a broad trade area with no nearby locations of the brand, driving consistent visitation from both La Grande and surrounding rural communities. Strong visitation and dwell time metrics support consistent customer engagement and repeat shopping patterns
• HEALTHCARE SYSTEM TENANCY: Grande Ronde Hospital provides institutional tenancy backed by a regional healthcare provider, adding stability and diversification to the income stream
• ACCESSIBLE LOCATION WITH STRONG VISIBILITY: Dual frontage along Island Avenue and Walton Road provides convenient access and exposure to more than 22,000 vehicles per day, supported by an efficient site layout with an above-market parking ratio of approximately 6 stalls per 1,000 SF
• SURPLUS LAND INCLUDED: ±1.77 acres of IC-C1 zoned developable land directly north of Grocery Outlet with frontage along Island Avenue (±13,000 VPD), included in the offering at no allocated basis
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