Office

Arabella Business Park

Listing Price: $4,998,000

Cap Rate
6.39%
Gross SF
25,966
Rentable SF
25,966
Price/Gross SF
$192.48
Lot Size
1.78 acres
Year Built
1999

Investment Overview

Marcus & Millichap has been retained to exclusively market for sale Arabella Business Park, a four-building, 25,966 rentable square foot property situated on 1.78 acres of land in Puyallup, WA. Built in two phases in 1997 and 1999, the property is on two parcels that are part of the Arabella - Glen Mar Park development located on the bustling commercial corridor of Meridian Avenue East.
All four buildings enjoy multi-tenant occupancy composed of medical, professional & service-based tenants with suite sizes that range from 380 sq ft to 3,100 sq ft. Building A benefits from Meridian Avenue East frontage (42,000 CPD) and is 100% leased to four medical tenants including dental, optometry, physical therapy, and massage therapy practices. Buildings B, C, and D are tenanted by businesses focused on professional services, martial arts instruction, dance instruction, mechanical services, manufacturing, and automotive repair. Many tenants have been in the property over ten years and continue to renew their leases for its excellent location, amenities and attractive build quality. Leases are typically 1 to 3 years in length and structured as either gross or modified gross format. Most significantly, the majority of in-place lease rates are substantially lower than the current market rates for the area.
Arabella Business Park is situated on Meridian Ave E (SR 161), a major thoroughfare that plays host to numerous retail, commercial, and office properties. SR 161 is the largest commercial corridor in the Puyallup area and has been the primary axis of growth for the past 20 years. Tenants have close proximity to the South Hill Mall, the largest regional mall in Pierce County located just 2 miles north, and Sunrise Village Shopping Center just 1.5 miles south. SR 512 is also just two miles north of the property, providing convenient access to I-5, SR 167 (Valley Freeway), and SR 410 (over the Cascades to Eastern Washington). 176th St E is located less than one mile south of the property, which provides the most convenient east/west access in the area, and leads directly to the rapidly developing industrial submarket of Frederickson, WA.
Since 2000, the population within a 3-mile radius of the property has increased by 39.82%. It is projected that population will grow from 82,833 to 91,818 over the next five years, bringing increased population density and higher rents as vacancy rates across the region are at record lows. Given these fundamentals, an investor in Arabella Business Park should expect to enjoy robust rent growth, high occupancy, and excellent risk-adjusted returns in the coming years.

Investment Highlights

  • Multi-Tenant Business Park with Medical, Retail, and Service Tenants
  • Below Market Rents and Long Standing Tenants
  • Property in a Low Vacancy Submarket
  • Excellent Commercial Visibility on Meridian: 42k Cars Per Day
  • Population Growth of 39.9% Since 2000

Exclusively Listed By

Listing Price: $4,998,000

Cap Rate
6.39%
Gross SF
25,966
Rentable SF
25,966
Price/Gross SF
$192.48
Lot Size
1.78 acres
Year Built
1999

Investment Highlights

  • Multi-Tenant Business Park with Medical, Retail, and Service Tenants
  • Below Market Rents and Long Standing Tenants
  • Property in a Low Vacancy Submarket
  • Excellent Commercial Visibility on Meridian: 42k Cars Per Day
  • Population Growth of 39.9% Since 2000

Investment Overview

Marcus & Millichap has been retained to exclusively market for sale Arabella Business Park, a four-building, 25,966 rentable square foot property situated on 1.78 acres of land in Puyallup, WA. Built in two phases in 1997 and 1999, the property is on two parcels that are part of the Arabella - Glen Mar Park development located on the bustling commercial corridor of Meridian Avenue East.
All four buildings enjoy multi-tenant occupancy composed of medical, professional & service-based tenants with suite sizes that range from 380 sq ft to 3,100 sq ft. Building A benefits from Meridian Avenue East frontage (42,000 CPD) and is 100% leased to four medical tenants including dental, optometry, physical therapy, and massage therapy practices. Buildings B, C, and D are tenanted by businesses focused on professional services, martial arts instruction, dance instruction, mechanical services, manufacturing, and automotive repair. Many tenants have been in the property over ten years and continue to renew their leases for its excellent location, amenities and attractive build quality. Leases are typically 1 to 3 years in length and structured as either gross or modified gross format. Most significantly, the majority of in-place lease rates are substantially lower than the current market rates for the area.
Arabella Business Park is situated on Meridian Ave E (SR 161), a major thoroughfare that plays host to numerous retail, commercial, and office properties. SR 161 is the largest commercial corridor in the Puyallup area and has been the primary axis of growth for the past 20 years. Tenants have close proximity to the South Hill Mall, the largest regional mall in Pierce County located just 2 miles north, and Sunrise Village Shopping Center just 1.5 miles south. SR 512 is also just two miles north of the property, providing convenient access to I-5, SR 167 (Valley Freeway), and SR 410 (over the Cascades to Eastern Washington). 176th St E is located less than one mile south of the property, which provides the most convenient east/west access in the area, and leads directly to the rapidly developing industrial submarket of Frederickson, WA.
Since 2000, the population within a 3-mile radius of the property has increased by 39.82%. It is projected that population will grow from 82,833 to 91,818 over the next five years, bringing increased population density and higher rents as vacancy rates across the region are at record lows. Given these fundamentals, an investor in Arabella Business Park should expect to enjoy robust rent growth, high occupancy, and excellent risk-adjusted returns in the coming years.

Exclusively Listed By

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