Shopping Community

Michaels / Cash & Carry Net-Leased

7630 N Division St, Spokane, WA 99208

Listing Price: $8,369,500

Cap Rate
7.00%
Gross SF
69,625
Rentable SF
69,625
Price/Gross SF
$120.21
Lot Size
2.26 acres
Year Built
1978

Investment Overview

Marcus & Millichap Real Estate Investment Services, as exclusive agent to Seller, is pleased to present for purchase a professionally managed, two-tenant, free-standing, retail property in Spokane, Washington.
Originally constructed in 1978, and renovated again in 1998, the total building area is 69,625 square feet, and the lot area 98,419 square feet (2.26 acres); there are a total of 380 parking spaces included in a common parking lot. Located at the intersection of North Division Street and Lincoln Drive, the building is part of the Northgate Center; a 15-building, 267,000 square foot, regional shopping community, and currently 92% leased.
Michaels Crafts occupies 28,000 square feet at the property, on an original 144-month net-lease. They executed early their 2nd lease renewal in 2013, which expires June 30, 2020. They have three, five-year lease renewals remaining that each include a $1/SF per year base rent increase.
Cash & Carry occupies 32,000 square feet on an original 120-month net-lease that expires December 31, 2020. They have three, five-year, and one, four-year lease renewals available to them with base rent increases equal to the change in the consumer price index over the previous 5-year period (capped at 10% each 5-year period).
The property fronts North Division Street (SR2), a major arterial traveling north-south thru central Spokane. More than 44,000 vehicles travel by the property each day, it is also on a transit/bus route. Prominent neighbors include Target, Trader Joes, Home Depot, Lowes, and Walmart. The area is revered as north Spokanes preeminent retail corridor.
Offered at $8.5 million dollars, $122 per building square foot, and a 6.9% capitalization rate on current annualized net income. The current annual net rent equals $11.53 per rentable square foot, while the prevailing market average is $14.50/SF per year, according to CoStar analytics. Investors will be attracted to this property because of the long-term, stable tenancy with scheduled base rent increases; and it is assumed that both tenants will exercise their next lease renewals in 2020. However, there is even greater net income growth potential if the property were released at the prevailing market rent.

Located approximately 275 miles east of Seattle, Spokane serves as the regional hub of eastern Washington and is the states 2nd largest city at 210,000 residents, which ranks 100 nationally. Historically, the regions economy had been based primarily on natural resources and agriculture. It is rapidly changing to one of services related and technology-oriented companies, a result of population growth that annually exceeds the national average.

Investment Highlights

  • Michaels and Cash & Carry locations since 2000
  • New 5-year net-leases with renewal options
  • Suites are separately metered and Property is professionally managed
  • Neighboring Target, Lowes, Walmart, & Home Depot
  • 5.5 stalls per 1,000 SF parking
  • 44,000 vehicles per day traffic (N Division Street)

Exclusively Listed By

Shopping Community

Michaels / Cash & Carry Net-Leased

Listing Price: $8,369,500

Cap Rate
7.00%
Gross SF
69,625
Rentable SF
69,625
Price/Gross SF
$120.21
Lot Size
2.26 acres
Year Built
1978

Investment Highlights

  • Michaels and Cash & Carry locations since 2000
  • New 5-year net-leases with renewal options
  • Suites are separately metered and Property is professionally managed
  • Neighboring Target, Lowes, Walmart, & Home Depot
  • 5.5 stalls per 1,000 SF parking
  • 44,000 vehicles per day traffic (N Division Street)

Investment Overview

Marcus & Millichap Real Estate Investment Services, as exclusive agent to Seller, is pleased to present for purchase a professionally managed, two-tenant, free-standing, retail property in Spokane, Washington.
Originally constructed in 1978, and renovated again in 1998, the total building area is 69,625 square feet, and the lot area 98,419 square feet (2.26 acres); there are a total of 380 parking spaces included in a common parking lot. Located at the intersection of North Division Street and Lincoln Drive, the building is part of the Northgate Center; a 15-building, 267,000 square foot, regional shopping community, and currently 92% leased.
Michaels Crafts occupies 28,000 square feet at the property, on an original 144-month net-lease. They executed early their 2nd lease renewal in 2013, which expires June 30, 2020. They have three, five-year lease renewals remaining that each include a $1/SF per year base rent increase.
Cash & Carry occupies 32,000 square feet on an original 120-month net-lease that expires December 31, 2020. They have three, five-year, and one, four-year lease renewals available to them with base rent increases equal to the change in the consumer price index over the previous 5-year period (capped at 10% each 5-year period).
The property fronts North Division Street (SR2), a major arterial traveling north-south thru central Spokane. More than 44,000 vehicles travel by the property each day, it is also on a transit/bus route. Prominent neighbors include Target, Trader Joes, Home Depot, Lowes, and Walmart. The area is revered as north Spokanes preeminent retail corridor.
Offered at $8.5 million dollars, $122 per building square foot, and a 6.9% capitalization rate on current annualized net income. The current annual net rent equals $11.53 per rentable square foot, while the prevailing market average is $14.50/SF per year, according to CoStar analytics. Investors will be attracted to this property because of the long-term, stable tenancy with scheduled base rent increases; and it is assumed that both tenants will exercise their next lease renewals in 2020. However, there is even greater net income growth potential if the property were released at the prevailing market rent.

Located approximately 275 miles east of Seattle, Spokane serves as the regional hub of eastern Washington and is the states 2nd largest city at 210,000 residents, which ranks 100 nationally. Historically, the regions economy had been based primarily on natural resources and agriculture. It is rapidly changing to one of services related and technology-oriented companies, a result of population growth that annually exceeds the national average.

Exclusively Listed By

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