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Shopping Regional

Velendo Plaza | Value-Add Business Center Featuring Below Market Rents

5131 NE 94th Ave, Vancouver, WA 98661

Listing Price: $7,880,000

Cap Rate
7.50%
Gross SF
41,057
Rentable SF
41,057
Price/Gross SF
$191.93
Lot Size
2.36 acres
Year Built
2000

Investment Overview

Marcus & Millichap’s Brown Retail Group has been selected to exclusively market for sale Velendo Plaza, a concrete block construction business center located in the heart of Vancouver, WA (Portland/Vancouver MSA). The Property is located across the street from Vancouver Mall, ranked in the top 5 malls in Washington state per Placer. ai receiving over 5.9 million visitors annually, and adjacent to Vancouver Mall Transit Center (3,796,727 annual passengers). The Property is currently 92% occupied with strong leasing momentum. The Property features a total of 19 tenants with varying lease expiration dates, ensuring a diversified income stream. Nearly 80% of the GLA has occupied the Property for more than six years showing strong historical occupancy. Approximately 74% of the GLA at the Property is paying an average rent of $17.00/ SF Modified Gross in rent, with market rents achievable in the $20-$24/SF Modified Gross range, providing an investor with significant upside potential to a proforma 10.22% cap rate. All tenants at the Property currently operate on Modified Gross leases allowing for reimbursement of utilities. With virtually all tenant leases coming due within the next 3 to 5 years, the new owner will have the opportunity to convert the Modified Gross leases to NNN and/or raise rents to market. The Property benefits from a population of over 285,000 residents within a 5-mile radius, with average household incomes exceeding $105,000, well above the national average. Within a 1-mile radius, the population has grown by more than 16% since 2011.

Investment Highlights

  • Value-Add Opportunity - Pro-Forma 10.22% Cap Rate (Below Market Rents)
  • 92% Leased Business Center with Strong Historical Occupancy | Staggered Lease Expiration
  • Strategic Location Adjacent to Vancouver Mall (5.9M+ Annual Visitors) and Various National Tenants
  • Affluent, High Population Growth Sub-Market
  • Strong Rent Growth (2.21% Annually) and High Barrier-to-Entry Market
  • Excellent Business Location Adjacent to SR 500 and I-205 Exits | High-Quality Concrete Block Construction
  • Strategically Located Adjacent to Major Transit Center
  • Income Tax-Free State

Exclusively Listed By

Shopping Regional

Velendo Plaza | Value-Add Business Center Featuring Below Market Rents

Listing Price: $7,880,000

Cap Rate
7.50%
Gross SF
41,057
Rentable SF
41,057
Price/Gross SF
$191.93
Lot Size
2.36 acres
Year Built
2000

Investment Highlights

  • Value-Add Opportunity - Pro-Forma 10.22% Cap Rate (Below Market Rents)
  • 92% Leased Business Center with Strong Historical Occupancy | Staggered Lease Expiration
  • Strategic Location Adjacent to Vancouver Mall (5.9M+ Annual Visitors) and Various National Tenants
  • Affluent, High Population Growth Sub-Market
  • Strong Rent Growth (2.21% Annually) and High Barrier-to-Entry Market
  • Excellent Business Location Adjacent to SR 500 and I-205 Exits | High-Quality Concrete Block Construction
  • Strategically Located Adjacent to Major Transit Center
  • Income Tax-Free State

Investment Overview

Marcus & Millichap’s Brown Retail Group has been selected to exclusively market for sale Velendo Plaza, a concrete block construction business center located in the heart of Vancouver, WA (Portland/Vancouver MSA). The Property is located across the street from Vancouver Mall, ranked in the top 5 malls in Washington state per Placer. ai receiving over 5.9 million visitors annually, and adjacent to Vancouver Mall Transit Center (3,796,727 annual passengers). The Property is currently 92% occupied with strong leasing momentum. The Property features a total of 19 tenants with varying lease expiration dates, ensuring a diversified income stream. Nearly 80% of the GLA has occupied the Property for more than six years showing strong historical occupancy. Approximately 74% of the GLA at the Property is paying an average rent of $17.00/ SF Modified Gross in rent, with market rents achievable in the $20-$24/SF Modified Gross range, providing an investor with significant upside potential to a proforma 10.22% cap rate. All tenants at the Property currently operate on Modified Gross leases allowing for reimbursement of utilities. With virtually all tenant leases coming due within the next 3 to 5 years, the new owner will have the opportunity to convert the Modified Gross leases to NNN and/or raise rents to market. The Property benefits from a population of over 285,000 residents within a 5-mile radius, with average household incomes exceeding $105,000, well above the national average. Within a 1-mile radius, the population has grown by more than 16% since 2011.

Exclusively Listed By

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