A single-tenant Safeway grocery property in Federal Way, Washington has been sold in an investment transaction that closed at the seller’s asking price. The asset, located at 28810 Military Road S., is net leased to Safeway and was reported to have traded for just over $7.7 million. The property continues to be backed by a corporate lease from Albertsons Companies, Inc., providing long-term income visibility for the new owner.
The buyer, Barber Family Properties LLC, is described as a California-based investor. The firm acquired the grocery-anchored property from LSD Enterprises LLC, which had owned the asset since 2018. The transaction was brokered by Colliers, with Senior Vice President Ryan Marn and Vice Chair El Warner representing the seller in the sale process. According to the parties involved, the deal was completed at the full asking price, signaling that pricing expectations were met in this instance.
The Safeway building was originally constructed in 1972 and has been updated over time to remain competitive in the market. The store underwent renovations in 2010, reflecting prior capital investment into the asset. The single-story structure encompasses approximately 25,766 square feet of interior space, all configured for grocery use under the Safeway banner.
The property is situated on a 2.8-acre site, providing a sizable land component alongside the building improvements. On-site parking is an important feature of the location, with 140 parking spaces supporting customer access and store operations. The site is described as being located near Dash Point State Park, placing the store within a broader retail and residential trade area that draws from surrounding communities.
The lease is corporately guaranteed by Albertsons Companies, Inc., and extends through 2037, offering a reported long remaining term for the incoming ownership. This structure positions the asset as a net-leased, grocery-anchored investment with a single national-credit tenant in place. The combination of a long-duration lease, established grocery operator, and fully leased condition was central to the investment profile presented in the sale.
The seller, LSD Enterprises LLC, exited after holding the property for roughly eight years, having purchased the asset in 2018. The buyer’s acquisition adds a net-leased grocery asset to its portfolio, supported by a corporate tenant commitment extending more than a decade into the future. The completed transaction underscores continued investor interest in grocery-anchored, single-tenant retail properties with long-term leases in established suburban locations.
