Faris Lee Investments, in cooperation with Commercial Realty Advisors, is pleased to present the rare opportunity to acquire Sunset Esplanade, a dominant Target (NAP) / Safeway / Rite Aid anchored community center. The center is located in the highly desirable Hillsboro submarket of Portland, Oregon, better known as the “Silicon Forest.” Sunset Esplanade lies within Portland’s nationally acclaimed and highly managed Urban Growth Boundary (UGB), which not only restricts any development outside of its boundaries, but carefully controls development within its boundaries. Within the Urban Growth Boundary is a recently expanded 640-acre industrial development area designated principally for supply-chain vendors that serve Intel, located adjacent to its campus to the north, as well as Reed’s Crossing, a residential development one mile east of Sunset Esplanade. Reed’s Crossing will consist of 8,000 homes and up to 20,000 new residents at completion (first phase to be completed in 2018). Reed’s Crossing is the largest single residential development in Oregon’s history, and will further expand and contribute to the growth of the market. Additionally, the UGB land use regulation does not contemplate any additional retail land development for the foreseeable future.
The lack of new retail development, plus the influx of new industrial and residential supply creates strong demand drivers for Sunset Esplanade. The Hillsboro retail market is one of the strongest in the US with an overall vacancy factor of 2% and tremendous pent up tenant demand. Sunset Esplanade has an unparalleled tenant roster of the top industry anchor retailers including Target (NAP), Safeway, Rite Aid, Ross Dress for Less, Petco, Joann Fabric and Dollar Tree, among others. More than 90% of the total GLA is made up of national retailers. Pad tenants include Starbucks, McDonalds (new double drive thru prototype opening August of 2018), Chase Bank, Panda Express, Mod Pizza (new facade improvements, opening soon) and Bank of America. As a testament to the real estate, Home Depot and Lowe’s Home Improvement (the only two home improvement stores in the entire trade area) have established locations across from Sunset Esplanade. The property enjoys excellent frontage along SE Tualatin Valley Highway, the main thoroughfare in the trade area, at the intersection with Cypress Street (35,000 VPD)