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Office

Pacific Brewery Building

2512 S Holgate St, Tacoma, WA 98402

Listing Price: $5,500,000

Cap Rate
4.84%
Gross SF
31,753
Rentable SF
31,753
Price/Gross SF
$173.21
Lot Size
0.44 acres
Year Built
1890

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire 2512 S Holgate St., A 31,753 SF Industrial & Office building in Tacoma, WA. Originally Built in 1890 and renovated in 1890 it is situated on 19,200 SF of land and provides convenient access to Downtown Tacoma, Public Transit, i5, and the Port of Tacoma. The offering represents and outstanding opportunity for the savvy investor or developer to capitalize on the burgeoning Tacoma CBD and long-term need for additional amenities or multi-family units. The current rent roll is a balanced mix anchored by the general contracting firm Abbot, inc.

Investment Highlights

  • SIGNIFICANT RENTAL UPSIDE - Current average rent is approximately $9.90 semi-gross with market rent estimated at $13-15 NNN.
  • ANNUAL RENTAL INCREASES - All of the leases with the exception of one features annual rental increases ranging from 3%-5% as a hedge against inflation.
  • HIGH GROWTH SUBMARKET - The Tacoma industrial/flex market has enjoyed 11.2% rental growth over the past year and supports over 42,000 jobs with $3B in annual labor income.
  • FUTURE DEVELOPMENT POTENTIAL - The property could be redeveloped in a similar fashion to a project directly across the street , Jefferson Flats, which is a 178 market-rate unit apartment building that is due to deliver in early 2024.
  • STRONG ANCHOR TENANT - Abbott Construction is a stalwart company with 300 employees and an estimated $300M in annual revenue that counts Vulcan, Whole Foods, Starbucks, and Capital One as marquee clients.
  • NNN CONVERSION - The future investor can gradually convert all of the leases to NNN in order to increase the passivity of the investment and to protect against inflationary exposure to expenses.
  • HISTORICAL OCCUPANCY - The flexible layout of office and warehouse space lends itself to a variety of potential uses that have enabled the building to historically be 100% occupied.
  • INCOME TAX-FREE STATE - Washington is an income tax-free state.

Exclusively Listed By

Office

Pacific Brewery Building

Listing Price: $5,500,000

Cap Rate
4.84%
Gross SF
31,753
Rentable SF
31,753
Price/Gross SF
$173.21
Lot Size
0.44 acres
Year Built
1890

Investment Highlights

  • SIGNIFICANT RENTAL UPSIDE - Current average rent is approximately $9.90 semi-gross with market rent estimated at $13-15 NNN.
  • ANNUAL RENTAL INCREASES - All of the leases with the exception of one features annual rental increases ranging from 3%-5% as a hedge against inflation.
  • HIGH GROWTH SUBMARKET - The Tacoma industrial/flex market has enjoyed 11.2% rental growth over the past year and supports over 42,000 jobs with $3B in annual labor income.
  • FUTURE DEVELOPMENT POTENTIAL - The property could be redeveloped in a similar fashion to a project directly across the street , Jefferson Flats, which is a 178 market-rate unit apartment building that is due to deliver in early 2024.
  • STRONG ANCHOR TENANT - Abbott Construction is a stalwart company with 300 employees and an estimated $300M in annual revenue that counts Vulcan, Whole Foods, Starbucks, and Capital One as marquee clients.
  • NNN CONVERSION - The future investor can gradually convert all of the leases to NNN in order to increase the passivity of the investment and to protect against inflationary exposure to expenses.
  • HISTORICAL OCCUPANCY - The flexible layout of office and warehouse space lends itself to a variety of potential uses that have enabled the building to historically be 100% occupied.
  • INCOME TAX-FREE STATE - Washington is an income tax-free state.

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire 2512 S Holgate St., A 31,753 SF Industrial & Office building in Tacoma, WA. Originally Built in 1890 and renovated in 1890 it is situated on 19,200 SF of land and provides convenient access to Downtown Tacoma, Public Transit, i5, and the Port of Tacoma. The offering represents and outstanding opportunity for the savvy investor or developer to capitalize on the burgeoning Tacoma CBD and long-term need for additional amenities or multi-family units. The current rent roll is a balanced mix anchored by the general contracting firm Abbot, inc.

Exclusively Listed By

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