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Shopping Strip

Cascade Village

17148 116th Ave SE, Renton, WA 98058

Listing Price: $8,900,000

Cap Rate
6.25%
Gross SF
46,119
Rentable SF
46,119
Price/Gross SF
$192.98
Lot Size
2.95 acres
Year Built
1986

Investment Overview

Cascade Village is a 46,119 square foot, retail center consisting of two buildings, situated on a 2.95-acre site. The property is currently 90.2% occupied by destination and service-based retailers, which are highly resistant to Internet sales. Additionally, the property has retained a strong historical occupancy with nearly 40% of the total GLA occupying the property for 10 years or more, and 33% with a tenure of at least 5 years. Key tenants in the building, Domino’s and R- Bar & Grill have also recently shown further commitment to the site. Domino’s, a tenant since 2012, completed a full interior remodel; R-Bar & Grill, a tenant since 2007 and making-up 18% of the total income, recently executed a new 10-year lease. The property also benefits from its below-market lease rates, which average $13.33/sf + NNN. Rents for comparable retail centers in the surrounding area range from $16 - $28/sf + NNN. The lower rents at Cascade Village will provide significantly lower operating costs to tenants, providing for continued success at the site, and long-term, stable cash-flow for an investor. Additionally, almost every lease is structured with annual 3% rental increases, generating year-over-year gains, and providing a strong hedge against inflation. Furthermore, the property offers two vacant suites totaling 9.80% of the GLA as well as a vacant cell tower, which provides significant investor upside upon lease-up.

Investment Highlights

  • Strong Historical Occupancy: Nearly 40% of the total GLA has occupied the property for over 10 years, and 33% has occupied the property for 5+ years.
  • Below Market Rents: Average rents for the Property are currently $13.33/SF + NNN. Rents for comparable retail centers in the area range from $16 - $28/SF + NNN.
  • Priced Below Replacement Cost: At only $193 per square foot, the property benefits from being priced significantly below the current cost to replace the asset.
  • Significant Rental Upside: Property offers one vacant suite (9.80% of GLA), which provides an additional $58,953 of Net Income Annually when leased at market rents.
  • 10-Year Anchor Renewal: R-Bar & Grill, a tenant since 2007 and makes up 18% of the current total income, recently executed a new 10-year lease.
  • Domino's Store Remodel: A tenant since 2012, Domino's recently completed an interior store remodel, showing its commitment to the site.
  • Scheduled Annual Rent Increases: 13 of the 15 tenants' leases offer scheduled annual rent increases throughout their lease terms.
  • Planned K-12 Public Charter School: Planned K-12 charter school on adjacent parcel. Includes significant improvements to the existing structure, landscaping, infrastructure and expanded green space.

Exclusively Listed By

Shopping Strip

Cascade Village

Listing Price: $8,900,000

Cap Rate
6.25%
Gross SF
46,119
Rentable SF
46,119
Price/Gross SF
$192.98
Lot Size
2.95 acres
Year Built
1986

Investment Highlights

  • Strong Historical Occupancy: Nearly 40% of the total GLA has occupied the property for over 10 years, and 33% has occupied the property for 5+ years.
  • Below Market Rents: Average rents for the Property are currently $13.33/SF + NNN. Rents for comparable retail centers in the area range from $16 - $28/SF + NNN.
  • Priced Below Replacement Cost: At only $193 per square foot, the property benefits from being priced significantly below the current cost to replace the asset.
  • Significant Rental Upside: Property offers one vacant suite (9.80% of GLA), which provides an additional $58,953 of Net Income Annually when leased at market rents.
  • 10-Year Anchor Renewal: R-Bar & Grill, a tenant since 2007 and makes up 18% of the current total income, recently executed a new 10-year lease.
  • Domino's Store Remodel: A tenant since 2012, Domino's recently completed an interior store remodel, showing its commitment to the site.
  • Scheduled Annual Rent Increases: 13 of the 15 tenants' leases offer scheduled annual rent increases throughout their lease terms.
  • Planned K-12 Public Charter School: Planned K-12 charter school on adjacent parcel. Includes significant improvements to the existing structure, landscaping, infrastructure and expanded green space.

Investment Overview

Cascade Village is a 46,119 square foot, retail center consisting of two buildings, situated on a 2.95-acre site. The property is currently 90.2% occupied by destination and service-based retailers, which are highly resistant to Internet sales. Additionally, the property has retained a strong historical occupancy with nearly 40% of the total GLA occupying the property for 10 years or more, and 33% with a tenure of at least 5 years. Key tenants in the building, Domino’s and R- Bar & Grill have also recently shown further commitment to the site. Domino’s, a tenant since 2012, completed a full interior remodel; R-Bar & Grill, a tenant since 2007 and making-up 18% of the total income, recently executed a new 10-year lease. The property also benefits from its below-market lease rates, which average $13.33/sf + NNN. Rents for comparable retail centers in the surrounding area range from $16 - $28/sf + NNN. The lower rents at Cascade Village will provide significantly lower operating costs to tenants, providing for continued success at the site, and long-term, stable cash-flow for an investor. Additionally, almost every lease is structured with annual 3% rental increases, generating year-over-year gains, and providing a strong hedge against inflation. Furthermore, the property offers two vacant suites totaling 9.80% of the GLA as well as a vacant cell tower, which provides significant investor upside upon lease-up.

Exclusively Listed By

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