INVESTMENT HIGHLIGHTS
13-YEAR ABSOLUTE NNN LEASE
The Property features roughly 12.75 years of lease term remaining, providing an investor with long-term, passive cash flow.
ATTRACTIVE RENT INCREASES
The Property features +3.70% annual rent increases over the first three years of the lease followed by a 10% rent increase resulting in a 7.23% cap rate effective September, 2027.
STRONG LEASE GUARANTEE
The lease is guaranteed by Sortis Income REIT, Inc, a large holding company with over $100,000,000 of assets and $17,000,000+ annual net income.
HIGH-TRAFFIC, HIGH-VISIBILITY LOCATION
The Property is located adjacent to HWY 3, on the corner of Viking Way and State HWY 305, featuring in excess of 74,000+ vehicles per day with great ingress/egress and visibility to the drive-thru and drive-in stations. The Property is surrounded by national retailers such as: Walmart, The Home Depot, Petco and more.
NEW BRAND TO BE ANNOUNCED SPRING 2024
A new brand will be announced Spring 2024 which will re-open operations at the Property. The new brand will be operating under the same lease terms with the same Guarantee from Sortis Income REIT, Inc.
PLANNED TENANT RENOVATIONS SPRING 2024
The Property will be renovated and updated in Spring 2024 to match the new brand’s concept, colors, and finishes.
ABSOLUTE NNN LEASE
The Property features an Absolute NNN lease with ZERO Landlord management or repair responsibilities.
AFFLUENT, HIGH POPULATION GROWTH MARKET
Within a 3-mile radius, the population has grown over 15% since 2010 and is projected to increase by another 2.3% in the next 5 years, with average household incomes nearly $110,000. Within a 1-mile radius, the population has grown by nearly 19% since 2010.
STRATEGIC QSR LOCATION
The Property benefits from close proximity to Olympic College, Vinland Elementary School, North Kitsap High School, and Poulsbo Elementary; is across the street from North Viking Transit Center/Park & Ride; is nearby multiple hotels; and is just down the road from Regal Cinema.
HIGH BARRIER-TO-ENTRY MARKET WITH STRONG RENT GROWTH
The Poulsbo, WA submarket currently boasts a 3.1% retail vacancy rate and 15.3% rent growth over the past three years (per CoStar), making it one of the strongest retail markets in the state of Washington. With no new retail product delivered in the past five years and nothing currently under construction, the development lull creates an incredibly high barrier-to-entry market as demand for space remains high.
INCOME TAX FREE STATE
Washington State is an income tax free state.
Listing Agents:
CLAYTON J. BROWN
RUTHANNE LOAR
206.493.2622
ruthanne.loar@marcusmillichap.com
