Flooring Company’s Sale-Leaseback Spree Tops $32 Million With Lacey Trade
Flooring Company's Sale-leaseback Spree Tops $32 Million With Lacey Trade
By: Robert Ibanez CoStar Research
Retailer Great Floors sold its location in Lacey, Washington, a town just east of Olympia, for $7.4 million in a sale-leaseback transaction. It is the latest of five sale-leasebacks executed by the Coeur d’Alene, Idaho-based chain since November 2021.
Together the deals add up to more than $32.6 million for Great Floors, which operates 19 locations in Washington state, Idaho and Montana, according to its website.
The Lacey store is a 46,000-square-foot building at 7800 Martin Way E. that was constructed in 2007. In this instance, the buyer is a group of limited liability corporations that seem to be tied to the Chulsky family, which owns Definitive Motors, a car dealership in Bellevue specializing in used luxury cars.
Both the buyer and the seller were represented by Clayton J. Brown, Christopher Edwards and Ruthanne Romero of the Brown Retail Group team in Marcus & Millichap’s Seattle office, which announced the Lacey deal in a March 25 statement.
So far, the Lacey location is the only Great Floors property in the Seattle region to be part of the company’s sale-leaseback push. According to CoStar records, three other properties recently sold are in the eastern half of Washington state, and a fourth is in western Idaho.
Brown Retail Group said all commanded high prices.
“The [Great Floors] leases were of interest because the included annual rent increases provided a hedge against rising inflation,” Brown Retail Group said in the statement.
The series of sale-leaseback transactions began in mid-November, when Great Floors landed a buyer for a 27,000-square-foot store in Kennewick, Washington, a city of roughly 85,000 about 225 miles southeast of Seattle. That building sold for just over $7 million, about $260 per square foot, which is about 46% higher than the going market rate for retail properties there, according to CoStar analytics.
The series of sale-leaseback transactions began in mid-November, when Great Floors landed a buyer for a 27,000-square-foot store in Kennewick, Washington, a city of roughly 85,000 about 225 miles southeast of Seattle. That building sold for just over $7 million, about $260 per square foot, which is about 46% higher than the going market rate for retail properties there, according to CoStar analytics.
That deal was followed by the $7.67 million sale of its store in Coeur d’Alene in late November, the $2.53 million sale of its Yakima location in late December, and the $8 million sale of a store in Spokane in early March 2022.
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