Slow and steady prevails in commercial real estate.
Jack in the Box recently opened in East Wenatchee at the former Maid O’ Clover site on the corner of Grant Rd. and Eastmont Ave. Several people, knowing our involvement in the property, have told us that it was good to see something finally happen there after its long dark period (store closed in mid 2005). This project, like most in commercial real estate, proved that patience and perseverance not only pay off in the end but are often the only option for true success in a development project.
The opening this past week was the culmination of a very complicated transaction including tenant buyouts, environmental due diligence, additional land acquisition, reciprocal easements, several near misses with other tenants and methodical lease negotiation all of which tested the limits of patience with the ownership & Center Investments, Inc. Often brokers are accused of not earning their pay, exemplified by simple transactions that turn quickly. In this instance we were paid only after nearly six years of tenaciously applying our knowledge of commercial leases, marketing & property development.
The property was a former C-store with gas pumps acquired by myself (Dan Barr) along with the owner’s of Eastpoint Plaza (Cascade Property Group), the adjacent property . As longtime managers of Eastpoint we had a good existing relationship with their group and this corner would play off their property, a fortunate pairing that ultimately was essential to success. We put the property under contract to purchase from a lender in Idaho who obtained title from the former C-Store operator who had lost the property to bankruptcy. After completing some $10,000 in due diligence to determine we weren’t buying an environmental problem caused by the gas tanks we purchased the property. By that time we had a letter of intent with the national tenant for whom we purchased the property to do a build-to-suit, the project showed great promise early on.
A deal with that tenant did not materialize despite two additional attempts spanning a three year time period. In the mean time another tenant, Banner Bank, was set on coming to the location and then ended up purchasing another bank which already had an East Wenatchee location. All the while we chased off people selling cars, had fun at the Classy Chassis parade every year and kept our view on the horizon and our communications open with Jack In The Box.
We had previously represented the property owner of the Wenatchee Jack in the Box location and had gone through a lengthy negotiation of a ground lease there. Before that we had worked with them on two other locations, over the previous five years, trying to get them to re-enter a market that had thrown them out so many years ago. We knew Jack viewed Wenatchee as a two store market and this East Wenatchee location would suit them if it could be expanded to accommodate their drive through restaurant, so with our fortuitous ownership group we set out with a vision to find a path to success.
It took two years to achieve a signed lease with Jack In the Box, which was conditioned upon expanding the site, working out reciprocal access issues and terminating the Tradewinds Coffee kiosk which occupied the adjacent area; all necessary to the task of delivering a functional location. Solving these issues specifically for Jack in the Box took three years but as of yesterday you could buy a Jumbo Jack on the corner of Grant Rd. & Eastmont Ave. in East Wenatchee.
- Dan Barr