Dealmaker: Marcus & Millichap Closes $18M in Property Sales

(Cross Court Plaza, Burlington, Wash.)

Marcus & Millichap, Calabasas, Calif., closed two property sales in Washington and Ohio totaling $17.7 million.

In Burlington, Wash., the firm sold Cross Court Plaza for $12.9 million. The 70,260-square-foot shopping center at 199 Cascade Mall Drive was 87 percent occupied at closing and sold for a 7-plus percent capitalization rate.

Eric Garske, Investment Specialist in Marcus & Millichap’s Portland, Ore. office, and First Vice President and Regional Manager Joel Deis represented the Texas-based private investor buyer, which purchased the property as part of a 1031 tax-deferred exchange after selling residential land in Texas. Both Texas and Washington are income tax-free states and therefore common states for like-kind exchanges.

In Cincinnati, Marcus & Millichap sold Mercy Health, a 15,000-square-foot net-leased property located at 8599 Ridge Road.

The asset, which has 10 years remaining on its lease with annual rental increases, sold for $4.8 million. Mark Ruble, Christopher Mitchel, Chris Lind and William Skoch, Investment Specialists in Marcus & Millichap’s Columbus, Cleveland and Phoenix offices, respectively, listed the property for the limited liability company seller.

“This particular deal was extremely challenging as it was a rare leasehold offering in a rising interest rate environment”, Mitchel noted. “We received multiple offers on the property and achieved an extremely aggressive cap rate for our client in a market where medical office cap rates are shifting upwards.”