Northmarq has completed the sale of a Lowe’s-occupied ground lease in Kent, Washington, marking a trade of a large-format, investment-grade retail asset in the South King County corridor. The property, situated at 24050 Pacific Hwy S., consists of a 10.62-acre site improved with a single-tenant Lowe’s home improvement store under a ground lease structure.
The Lowe’s store was built in 2006 and totals 135,041 square feet, providing a long-established retail presence in the submarket. The store sits on a sizable parcel, offering both building coverage and parking fields that support the big-box format. The leasehold interest sold encompasses the land underlying the store rather than the building itself, consistent with typical ground lease arrangements.
Northmarq represented the seller in the disposition, with the firm’s Pacific Northwest Investment Sales team leading the assignment. The brokerage team included Sean Tufts, Kevin Adatto, Joe Dugoni, and Jack Hallberg, who worked in collaboration with Austin Cohn of Wahl & Associates. Together, the group brokered the transaction and coordinated the competitive marketing process.
The buyer is described as a private, East Coast-based group that acquired the ground lease as part of a 1031 exchange. This profile underscores ongoing interest from out-of-region investors seeking net lease and long-term income opportunities in the Pacific Northwest, particularly where credit tenancy and established operating histories can help support tax-deferred exchange strategies.
According to commentary from Northmarq, the marketing effort produced multiple offers before the seller proceeded with the selected buyer. The team cited the combination of investment-grade tenancy from Lowe’s and perceived long-term upside associated with a low-rent ground lease as key drivers of investor interest. This dynamic reflects continued demand for durable, credit-backed cash flows in the retail sector, even as broader capital markets remain selective.
The property benefits from its proximity to regional transit infrastructure, located one block south of the Kent Des Moines Link light rail station. That station opened in December 2025 as part of Sound Transit’s Federal Way Link Extension, enhancing connectivity for the surrounding trade area. The combination of a nationally recognized tenant, long-term ground lease structure, and adjacency to light rail positions the asset as a noteworthy example of stabilized retail real estate drawing capital from outside the local market.
