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Bellingham’s Home Depot building sale tops $25 million

The Home Depot building at 420 Telegraph Rd. was sold, but no changes are expected.

The 104,950-square-foot building was sold for $25.59 million to Realty Income Corporation out of San Diego. The seller was Cole HD Bellingham Wa DST, which lists Equity Fund Advisors of Phoenix, Ariz. as the principal agent, according to records at the Whatcom County Treasurer’s Office. The building last sold in 2006 for $21.7 million.

Home Depot has several years left on a long-term lease for that address, said Lance Sasser, director of research and analytics at Capital Pacific, which represented the seller in the transaction. Home Depot first moved into that building in 1998.

Sasser said single-tenant retail properties in Western Washington are some of the most sought-after commercial real estate investments in the Pacific Northwest, adding that many properties are valued higher than the peak market years of 2006-2007.

“The increased demand coupled with the relatively low supply of quality, single-tenant properties on the market has played a major role in the record-setting values we’ve witnessed in recent months,” Sasser said in an email.

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