Investment Summary
Price | $6,200,000 |
Cap Rate | |
NOI | grocey |
Lease Term | 15 Years |
Lease Type | Net, with Tenant Responsible for all Taxes, Insurance, Roof, and Nonstructural Maintenance |
Rental Increases | 10.5% Rental Increases Every Five (5) Years and a 13.34% Increase in Option 5 |
Year Built | 2019 |
Building Size | 16,456 SF |
Lot Size | 1.36 Acres (59,242 SF) |
Status | Sold |
Lead Brokers | Ryan Forsyth Cushman & Wakefield 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Vincent Aicale Cushman & Wakefield 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Michael T. Yuras, CCIM Cushman & Wakefield 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Senior Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
RARE NET LEASE TO STRONG GROCERY TENANT
» Long-term, 15-year lease with five five-year option periods
» Net lease provides ideal passive investment for an out-of-area investor
» 10.5% rental increases every five years in initial term and option, plus a 13.34% increase in Option 5, providing a hedge against inflation
» Grocery Outlet (NASDAQ: “GO”) is the nation’s largest extreme value grocery retailer, with more than 320 locations and over $2.29 billion in annual revenue
» Grocery Outlet’s recent IPO raised net proceeds of approximately $399.6 million, about $150 million more than initially expected
» Grocery Outlet is continuing its expansion nationally, with 32 new stores expected to open by year-end 2019
HIGH-TRAFFIC LOCATION IN PRIMARY RETAIL CORRIDOR
» Located on First Street, Cheney’s primary thoroughfare, with excellent visibility and access to 18,000 vehicles per day
» First Street runs concurrently with State Route 904, which provides access to Interstate 90, the main highway through the Spokane area
» Close to several notable national retailers, including Safeway, Dollar Tree, Ace Hardware, O’Reilly Auto Parts, McDonald’s, Starbucks, Verizon, and many others
CENTRAL LOCATION NEAR MAJOR SCHOOLS AND EMPLOYERS
» Close to Eastern Washington University, the centerpiece of Cheney’s academic and cultural environment
» Eastern Washington University has a total enrollment of 13,453 students and employs 1,370 staff members, making it the largest employer in Cheney
» Near several of Cheney’s other schools, including Betz Elementary School (421 students), Cheney Middle School (487 students), and Cheney High School (1,220 students)
NEW Q4 2019 CONSTRUCTION
» High-quality construction scheduled to be completed in late 2019
» Features latest Grocery Outlet store design and concepts
Property Description
SOLD
The property is located on First Street, Cheney’s primary thoroughfare, with excellent visibility and access to 18,000 vehicles per day. First Street runs concurrently with State Route 904, which provides access to Interstate 90, the main highway through the Spokane area. The property is conveniently located on Cheney’s main retail corridor. Several notable national retailers are near the property, including Safeway, Dollar Tree, Ace Hardware, O’Reilly Auto Parts, McDonald’s, Starbucks, Verizon, and many others.
The property is close to Eastern Washington University, the centerpiece of Cheney’s academic and cultural environment. Eastern Washington University has a total enrollment of 13,453 students and employs 1,370 staff members, making it the largest employer in Cheney. The property is also near several of Cheney’s other schools, including Betz Elementary School (421 students), Cheney Middle School (487 students), and Cheney High School (1,220 students).