A significant commercial property in Kent, located near a new Link light rail station that is part of the Federal Way Link Extension, has recently been sold. The 10.62-acre Lowe's ground lease, situated at 24050 Pacific Highway South, was acquired by a private East Coast-based investor group. Northmarq’s Pacific Northwest Investment Sales team, including Sean Tufts, Kevin Adatto, Joe Dugoni, and Jack Hallberg, in collaboration with Austin Cohn of Wahl & Associates, represented the seller in the transaction.
The property, which includes a 135,041-square-foot Lowe's store built in 2006, is positioned one block south of the Kent Des Moines Link light rail station. This station opened in December 2025 as a key component of the broader Federal Way Link Extension, a project that will significantly alter transit options and development patterns in our region. The sale underscores the growing interest in properties positioned near new transit infrastructure, particularly as the Federal Way Link Extension aims to connect our community more broadly.
Sean Tufts of Northmarq noted that the sale involved a "competitive process, securing multiple offers" before proceeding with the buyer. Tufts highlighted that the group recognized both the investment-grade tenancy and the "long-term upside of the low rent ground lease." He also commented that this transaction continues a trend of out-of-market capital investing in the Pacific Northwest, where new retail development is increasingly challenging to initiate.
The area surrounding the property has experienced a 22% population growth since 2010. This trend is anticipated to accelerate further due to continued light rail-driven development in the Midway subarea, which is adjacent to Federal Way. The property's zoning, MCR (Midway Commercial/Residential), allows for significant future redevelopment opportunities. These include the potential for large-scale multifamily projects, up to 16 stories high with no unit limit, or re-tenanting at market rates. Investors also see potential in an owner-user sale.
Currently, the effective rent for the property is estimated to be 50% to 70% below market rates. This provides an attractive entry point for investors looking for long-term land bank opportunities in areas adjacent to new transit infrastructure like the Federal Way Link Extension. The sale of this site points to a future where land use and development around major transit hubs, including those impacting Federal Way, may evolve significantly. Residents can anticipate observing how such investments near the Federal Way Link Extension influence the growth and character of communities like Midway.