Grocery chain with Tacoma stores makes deal to keep its locations in place for years
A recent sale-leaseback involving nearly 30 Fred Meyer locations was announced this week by Institutional Property Advisors, a division of Marcus & Millichap, advisor to Cincinnati-based The Kroger Co. and Portland-based Fred Meyer Stores Inc.
The deal, brokered by IPA, involved the sale to Florida-based Benderson Development and leaseback of a portfolio of 4.5-million-square-foot, 28-property Fred Meyer superstores in Washington, Oregon, Idaho and Alaska, including two Tacoma stores.
“This was a once-in-a-generation opportunity to acquire a portfolio of dominant essential retail stores,” said Patrick Toomey, IPA executive director in a news release announcing the deal.
“Kroger will execute brand new, 25-year absolute net leases for each property with an initial portfolio-wide base rent totaling $25 million per year.”
The Fred Meyer portfolio represents the Benderson’s sixth major acquisition in the past 18 months, with the purchases exceeding $1.5 billion. The portfolio sale price was not disclosed.
The Tacoma stores listed in the deal are at 7520 Pacific Ave. and 4505 S. 19th St. Other Washington state stores include Shoreline, Bellingham, Everett, Lynnwood, Longview, Vancouver, Puyallup and Richland.
Jeffery Temple, media representative for Fred Meyer, told The News Tribune in response to questions via email, “What this means for Fred Meyer and our customers is that we have entered into new 25-year leases that help ensure that we can keep our stores in place for many years to come.”
He added, “This transaction will allow Fred Meyer and Kroger long-term stable lease agreements, which are very important for a business model that runs on razor thin profit margins.”
Randy Benderson of Benderson Development said in the release: “The Pacific Northwest has always been one of our top areas of interest to grow our national footprint.
“Fred Meyer is a leader in these markets, and we’re very pleased to strengthen and enhance our long-term partnership with them.”
IPA officials said more than 20 qualified bidders competed for the portfolio.
This story was originally published May 6, 2021 at 11:33 AM.
