Owner store

Great Floors sells property portfolio including Kennewick store

Great Floors, the Coeur d’Alene, Idaho-based flooring chain, has sold five locations in a $33 million sale-leaseback deal that includes its location in Kennewick.

The portfolio also included Great Floors stores in Coeur d’Alene, Spokane Valley, Lacey and Yakima.

The buyers were mostly California and Western Washington 1031 stock investors, meaning they were reinvesting proceeds from other commercial property sales to delay the payment of capital gains taxes. under section 1031 of the tax code.

Marcus & Millichap’s Seattle office represented Great Floors and released portfolio details in early April.

Kennewick’s location, 7220 W. Okanogan Place, sold to Ancient Boundary LLC of Angels Camp, Calif., for just over $7 million, above the asking price of $6.7 million. The 26,000 square foot store cost $1.7 million to build in 2015 and neighbors the Three Rivers Convention Center, Benton County Justice Center and Columbia Center retail corridor.

The deal was reached in November, Benton County assessor records show.

Great Floors has signed 10-year triple net leases with its new owners, which means there will be little outside evidence of the change in ownership of the property.

The Kennewick store was arguably the most lucrative sale from Great Floors’ perspective due to the aggressive cap rate. The cap rate of 4.91%, the lowest of the five, is a sign that the new buyer owner is convinced that the location will be a good investment.

“Buyer felt strongly about buying in the Tri-Cities market moving capital from California, felt very comfortable with the strength of the tenant and with the metrics of the transaction (rent, location, asset type, property use, etc.), said Chris Edwards, market manager for Marcus & Millichap’s Brown Retail Group.

Coeur d’Alene sold for $7.7 million with a cap rate of 4.95%.

Spokane Valley sold for just over $8 million with a cap rate of 5.18%. Lacey sold for $7.4 million with a cap rate of 5.35% and Yakima sold for $2.7 million with a cap rate of 4.95%.

Great Floors operates flooring stores in Washington, Idaho, Oregon and Montana. It employs 400 people and has annual sales “well over” $100 million.

The combined value of the sale of the portfolio was $32.7 million, with an average capitalization rate of 5.07%.