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Office Medical

Third Street Building

103 E 3rd St, Arlington, WA 98223

Listing Price: $3,045,000

Cap Rate
5.32%
Gross SF
14,025
Rentable SF
13,450
Price/Gross SF
$217.11
Occupancy
100.0%
Year Built
1900
Lot Size
0.20 acres

Investment Overview

The Leibsohn Group is pleased to present the sale offering for the Third Street Building prominently located in the core of Downtown Arlington, Washington. This excellent office / retail investment property is 100% stabilized with a diverse tenant mix featuring well established anchor tenants such as Reaction Physical Therapy and The Silly Valley Chamber of Commerce. The savvy investor will benefit from the excellent location in a high growth market within direct proximity to new development activity such as the 2.8 million sf state-of-the- art Amazon Distribution Facility scheduled to open this year. The exciting market trends should allow the new owner to realize significant near-term rental upside improving the current average in-place rents of only $17 Gross to a converted market rent level anticipated to be near $18 plus the full NNN reimbursements from tenants.

Investment Highlights

  • Significant Rental Upside: Current average rent is approx. $17 Gross with market rent estimated at $17-18 NNN. The Anchor tenant, RET Physical Therapy, is vastly below market at $14 Gross.
  • Surrounding New Developments: New commercial developments include a new 1 million SF industrial park, and 2.8 million SF Amazon Fulfillment Center.
  • Annual Rental Increases: All of the in-place leases include annual rental increases of 3% as a hedge against inflation.
  • NNN Conversion: In addition to rental upside, the future investor can gradually convert all of the leases to NNN in order to increase passivity and protect against inflationary pressures on expenses.
  • Extremely Low Office Vacancy: The Arlington office submarket is on the tightest submarkets in Snohomish County with a vacancy rate of 1.1%.
  • Strong Anchor Tenant: RET Physical Therapy is a very well established, high quality outpatient physical therapy provider with over 31 clinics located throughout Puget Sound.
  • Substantial Tenant Improvements: RET Physical therapy completed extensive tenant improvements to create a high-end medical facility in their suite, complete with new finishes and plumbing.
  • Income Tax Free State: Washington is an income tax free state.

Exclusively Listed By

Financing By

Office Medical

Third Street Building

Listing Price: $3,045,000

Cap Rate
5.32%
Gross SF
14,025
Rentable SF
13,450
Price/Gross SF
$217.11
Occupancy
100.0%
Year Built
1900
Lot Size
0.20 acres

Investment Highlights

  • Significant Rental Upside: Current average rent is approx. $17 Gross with market rent estimated at $17-18 NNN. The Anchor tenant, RET Physical Therapy, is vastly below market at $14 Gross.
  • Surrounding New Developments: New commercial developments include a new 1 million SF industrial park, and 2.8 million SF Amazon Fulfillment Center.
  • Annual Rental Increases: All of the in-place leases include annual rental increases of 3% as a hedge against inflation.
  • NNN Conversion: In addition to rental upside, the future investor can gradually convert all of the leases to NNN in order to increase passivity and protect against inflationary pressures on expenses.
  • Extremely Low Office Vacancy: The Arlington office submarket is on the tightest submarkets in Snohomish County with a vacancy rate of 1.1%.
  • Strong Anchor Tenant: RET Physical Therapy is a very well established, high quality outpatient physical therapy provider with over 31 clinics located throughout Puget Sound.
  • Substantial Tenant Improvements: RET Physical therapy completed extensive tenant improvements to create a high-end medical facility in their suite, complete with new finishes and plumbing.
  • Income Tax Free State: Washington is an income tax free state.

Investment Overview

The Leibsohn Group is pleased to present the sale offering for the Third Street Building prominently located in the core of Downtown Arlington, Washington. This excellent office / retail investment property is 100% stabilized with a diverse tenant mix featuring well established anchor tenants such as Reaction Physical Therapy and The Silly Valley Chamber of Commerce. The savvy investor will benefit from the excellent location in a high growth market within direct proximity to new development activity such as the 2.8 million sf state-of-the- art Amazon Distribution Facility scheduled to open this year. The exciting market trends should allow the new owner to realize significant near-term rental upside improving the current average in-place rents of only $17 Gross to a converted market rent level anticipated to be near $18 plus the full NNN reimbursements from tenants.

Exclusively Listed By

Financing By

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