Grocery-anchored retail center serves affluent Lakeland Hills community and strengthens firm’s West Coast retail portfolio.
BOSTON — Intercontinental Real Estate Corporation has acquired Lakeland Town Center, a 125,233-square-foot grocery-anchored retail center in Auburn, Washington, for $69.5 million, expanding the firm’s presence in high-demand neighborhood retail markets.
Located in the Seattle/Tacoma suburb of Auburn, Lakeland Town Center sits at the commercial center of Lakeland Hills, an affluent master-planned community approximately 25 miles south of downtown Seattle. The acquisition reflects Intercontinental’s continued focus on well-located, necessity-based retail properties supported by strong demographics and durable tenant demand.
Strong Location and Established Tenant Base
Built in 2002, Lakeland Town Center occupies a 12.61-acre site and serves a trade area of approximately 52,000 households with an average household income exceeding $183,000.
The property features both pad and inline retail space, supported by 704 parking spaces and prominent visibility along Lake Tapps Parkway East, where more than 16,000 vehicles pass the center each day.
The fully leased property is anchored by Haggen Northwest Fresh, a premium regional grocery store and subsidiary of Albertsons/Safeway (NYSE: ACI). Haggen is the only full-service grocery provider serving the Lakeland Hills and Lake Tapps trade area, making the center a key daily-needs destination for surrounding residents.
The tenant lineup includes a mix of restaurants, fitness providers, healthcare services, and neighborhood businesses, including Subway, Hops N Drops, Rock Wood Fired Pizza, Puerto Vallarta Mexican, Sushi Konami, Ichi Teriyaki, Legendary Doughnuts, Nekter Juice Bar, Menchie’s, Pacific Cataract and Laser Institute, Gentle Dental and Orthodontics, Outpatient Physical Therapy, Edward Jones, McDonald’s, Wells Fargo, UPS Store, Orangetheory Fitness, and Club Pilates.
Investment Strategy Focused on Long-Term Performance
Following the acquisition, Intercontinental plans to implement a targeted capital improvement program focused on roof lifecycle replacement and property upgrades as tenants renew leases.
The company will also pursue a leasing strategy designed to preserve and enhance the center’s existing mix of restaurants, fitness offerings, medical providers, and neighborhood services.
Intercontinental said the goal is to maintain Lakeland Town Center as a convenient community hub where residents can access essential services close to home.
“Lakeland Town Center is the dominant daily-needs destination in a captive, high-income trade area, supported by a top-performing grocery anchor and one of the tightest retail submarkets in the Seattle metro,” said Jessica Levin, Managing Director, West Coast and Associate CIO at Intercontinental. “With retail vacancy in East Pierce County at 2.4% and effectively no new supply under construction, we believe the Property is positioned to deliver durable cash flow over the long term.”
Tight Retail Market Supports Acquisition
The acquisition comes as retail fundamentals remain strong in East Pierce County, where vacancy rates stand at approximately 2.4%, below the area’s 10-year average of 3.0%.
The submarket currently has no retail space under construction and only 13,000 square feet proposed over the next eight quarters. The neighborhood center segment has not seen new deliveries since 2020, further supporting demand for existing well-positioned properties.
“This acquisition reflects our focus on well-located, grocery-anchored retail with strong demand fundamentals,” said Ross Karetsky, Associate Director, Acquisitions at Intercontinental. “Lakeland Town Center’s consistently strong occupancy over the last ten-plus years speaks to how well this location serves its community. Our goal is to continue curating a mix of restaurants, fitness, medical, and neighborhood service tenants that keep local residents coming back.”
Expanding Intercontinental’s Retail Portfolio
The acquisition reinforces Intercontinental’s strategy of investing in established retail assets with strong tenant demand, limited competition, and long-term income potential.
The property was marketed on behalf of the seller by Geoff Tranchina, Gleb Lvovich, Dan Tyner, and Tess Berghoff of JLL Capital Markets.
