Alamo Group JV Pays $25M for Washington Shopping Center
Alamo Group and Covenant Real Estate Group have purchased Walla Walla Town Center, a 120,169-square-foot retail center in Walla Walla, Wash., with the assistance of Marcus & Millichap. Zelman Development Co. sold the property for $24.5 million, public records show. The buyers financed the acquisition with a $15.2 million loan from A10 Capital.
At the time of the sale, the property was 93 percent leased. The shopping center’s tenant roster includes a diverse mix of national and regional retailers such as Marshall’s, Planet Fitness, Ross, Ulta Cosmetics, Pet Smart, Hobby Lobby, Famous Footwear and Sportsman’s Warehouse. In addition, negotiations with Old Navy to fill the vacancies are underway, Marcus & Millichap’s Christopher Edwards said in prepared remarks.
Edwards, together with Senior Vice President Clayton Brown and Associate Ruthanne Loar, negotiated the deal on behalf of the buyers.
Walla Walla Town Center, up close
The retail center came online in 1989 as Blue Mountain Mall, a 31-acre shopping mall which was the primary retail destination in the surrounding area. The mall was demolished in 2017 due to poor performance, and the property was redeveloped as Walla Walla Town Center one year later.
The shopping mall used to also include a ShopKo store that survived the revamping process. Alamo purchased the vacant building last year and is redeveloping it also for retail use; Home Goods and Burlington will occupy it starting this spring.
Located at 1631 W. Rose St., near the intersection of Rose Street and Myra Road, the retail asset is less than 2 miles from the city center and Walla Walla University. The Walla Walla Regional Airport is less than 6 miles away.
The retail sector has shown resilience and a good performance throughout 2023. The industry continues to prioritize the creation of inviting shopping environments, such as open-air centers and experiential retail models.
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