Skip to main content

Office Medical

Mountlake Terrace Professional Building

6405 218th St SW, Mountlake Terrace, WA 98043

Listing Price: $10,500,000

Cap Rate
3.71%
Gross SF
30,971
Rentable SF
30,971
Price/Gross SF
$339.03
Year Built
1987
Lot Size
2.39 acres

Investment Overview

Marcus & Millichap is pleased to offer for sale the Mountlake Terrace Professional Center (the Property), a 32,258 square foot professional office property located in tax-advantaged Mountlake Terrace, Washington. With predominantly short-term, below-market rate leases, the Property presents an excellent opportunity for both value-add and owner/user investors alike. At present this the three-story Property is home to over a dozen tenants who enjoy its tranquil setting, contemporary finishes and immediate access to both Interstate 5 and Highway 99. The largest tenant, Falck Northwest, an ambulance service, occupies approximately 30% of the rentable building area.

Tenants at the Property pay their pro-rata share of operating expenses per the NNN lease structure. The Property has a strong historical occupancy with below-market rents, and tenants have typically signed into 3 to 5-year leases with options to extend their occupancy. With lease renewals over the next several years, there is an opportunity for a new investor to improve the current cash flow of the Property and raise current rents to reflect the market-level. There are few other opportunities in the Mountlake Terrace submarket for tenants to find similar space. Additionally, a very difficult to relocate cell tower occupies approximately 300 square feet on the East side of the property, generating supplemental income. From a physical standpoint, the Property is well-maintained and benefits from having undergone a complete building envelope renovation that was finished in 2010.

The Property is well positioned in an obvious path-of-growth submarket. Located just blocks from the 220th Street Interstate 5 exit, and 16 blocks North of the Link Light Rail Expansion, the submarket attracts numerous tenants who wish to provide a better experience for their employees with improved parking & access to public transportation in a lower cost of living area that has better schools. In recent years a steady stream of Seattle-area tenants have migrated North looking to escape high rents, crime, and tax rates found in Seattle for a quieter, more accessible location.

Investment Highlights

  • Value-Add or Owner/User Opportunity
  • Below-Market NNN Leases
  • Immediate Access to I-5 and Highway 99
  • Path of Growth Submarket: Light Rail Arriving in 2024
  • Tax Advantaged Location: No Local B&O Tax
  • Building Envelope Renovated in 2010

Exclusively Listed By

Financing By

  • Tammy Linden

    Vice President Capital Markets

    Direct:

    Email Tammy

    Seattle, WA

Office Medical

Mountlake Terrace Professional Building

Listing Price: $10,500,000

Cap Rate
3.71%
Gross SF
30,971
Rentable SF
30,971
Price/Gross SF
$339.03
Year Built
1987
Lot Size
2.39 acres

Investment Highlights

  • Value-Add or Owner/User Opportunity
  • Below-Market NNN Leases
  • Immediate Access to I-5 and Highway 99
  • Path of Growth Submarket: Light Rail Arriving in 2024
  • Tax Advantaged Location: No Local B&O Tax
  • Building Envelope Renovated in 2010

Investment Overview

Marcus & Millichap is pleased to offer for sale the Mountlake Terrace Professional Center (the Property), a 32,258 square foot professional office property located in tax-advantaged Mountlake Terrace, Washington. With predominantly short-term, below-market rate leases, the Property presents an excellent opportunity for both value-add and owner/user investors alike. At present this the three-story Property is home to over a dozen tenants who enjoy its tranquil setting, contemporary finishes and immediate access to both Interstate 5 and Highway 99. The largest tenant, Falck Northwest, an ambulance service, occupies approximately 30% of the rentable building area.

Tenants at the Property pay their pro-rata share of operating expenses per the NNN lease structure. The Property has a strong historical occupancy with below-market rents, and tenants have typically signed into 3 to 5-year leases with options to extend their occupancy. With lease renewals over the next several years, there is an opportunity for a new investor to improve the current cash flow of the Property and raise current rents to reflect the market-level. There are few other opportunities in the Mountlake Terrace submarket for tenants to find similar space. Additionally, a very difficult to relocate cell tower occupies approximately 300 square feet on the East side of the property, generating supplemental income. From a physical standpoint, the Property is well-maintained and benefits from having undergone a complete building envelope renovation that was finished in 2010.

The Property is well positioned in an obvious path-of-growth submarket. Located just blocks from the 220th Street Interstate 5 exit, and 16 blocks North of the Link Light Rail Expansion, the submarket attracts numerous tenants who wish to provide a better experience for their employees with improved parking & access to public transportation in a lower cost of living area that has better schools. In recent years a steady stream of Seattle-area tenants have migrated North looking to escape high rents, crime, and tax rates found in Seattle for a quieter, more accessible location.

Exclusively Listed By

Financing By

  • Tammy Linden

    Vice President Capital Markets

    Direct:

    Email Tammy

    Seattle, WA

MM Texture Background
MM Textured Background Lower