Investment Overview

Marcus & Millichap has been selected to exclusively market for sale a successful Flying Squirrel Sports location in Everett, WA. Flying Squirrel Sports has 8 years remaining on the initial 10-year Personal Guaranteed NNN lease. The Property recently underwent a $7,500,000 remodel, $1,500,000 from landlord costs and $6,000,000 from the tenant for a completely new buildout featuring state of the art entertainment for kids to adults. The Property is priced well below the cost to build a comparable building in the local sub-market, providing a secure entry basis. The Lease features 10% rent increases every 5 years, with the next rent increase set to occur in July, 2026 bringing the cap rate to 7.70%. The Property is located off of SE Everett Mall Way (40,000+ VPD) and I-5 (172,000+ VPD) being at the epicenter of the main retail corridor of Everett. Across the street is the Everett Mall which brings in over 5,000,000 visitors every year. The Property benefits from being just north of a new Chick-Fil-A being developed as well as plans for a new Ulta, HomeGoods and At Home Superstore to be built. The high-barrier to entry Everett submarket boasts 4.5% year-over-year rent growth and 14% rent growth since the start of 2020. In the past 12 months, only 1,900 SF of new product has been delivered in the local submarket with no new inventory currently under construction, making large retail space a limited commodity with demand high. The Property benefits from a population of over 600,000 residents within a 10-mile radius, with average household income exceeding $115,000.