INVESTMENT HIGHLIGHTS
STABILIZED, 100% OCCUPIED NNN medical BUILDING WITH DIVERSE TENANT MIX
The Property is 100% leased by a diverse mix of tenants including medical, financial services, real estate, personal services, graphic design, and restaurant, offering a stable and diversified income stream.
70% OF GLA OCCUPIED BY MEDICAL TENANTS
The Property is 70% occupied by medical tenants of different specialties, including laboratory testing, women’s health, dermatology, and a non-opioid pain clinic, providing a strong tenant base for the continued success of the Property. Medical suites require expensive build-outs, increasing the likelihood for tenants to remain in the building for the long-term.
ATTRACTIVE NNN LEASE STRUCTURE
All of the tenants at the Property currently operate on NNN leases allowing for reimbursement of nearly all expenses, including Management Fee, providing a hedge against rising operating expenses.
ANNUAL RENT INCREASES
Eight of the ten tenants’ leases benefit from annual 3% rent increases during the initial lease terms, providing a hedge against inflation.
BRAND-NEW ROOF INSTALLED IN NOVEMBER 2023
The Property features a brand-new roof installed in November 2023, featuring a new 20-year transferable roof warranty.
CLASS A BUILDING WITH RECENT RENOVATION
The Building was built in 2006 with high-end finishes and has been well maintained. Within the last two years, every suite within the building was fully renovated. Additionally, in 2022, all HVAC units were repaired or replaced. The Property also received a new roof in November 2023.
STRATEGIC LOCATION WITH EXCELLENT VISIBILITY AND EASY ACCESS
The Property benefits from its location on the corner of W 27th Ave and S Union St. (25,000+ VPD) and being just off Hwy 395 (22,000+ VPD). All three roadways are main arterials through Kennewick, providing easy access for employees and customers coming from anywhere within Kennewick. The Property also benefits from being surrounded by residential neighborhoods, with over 107,000 residents within a 5-mile radius.
HIGH BARRIER-TO-ENTRY MARKET WITH STRONG RENT GROWTH AND LOW VACANCY RATE
The Tri-Cities MSA currently boasts a 5.9% office vacancy rate (less than half the national average of 13.5%) and 1.4% annual office rent growth (double the national rate of 0.7%), per CoStar. With only 7.7% office footprint growth in the past decade and only 15,880 SF of new office space delivered in the past 12 months (0.2% increase), the development lull creates an incredibly high barrier-to-entry as demand for space remains high.
STAGGERED LEASE EXPIRATION DATES
The Property features a total of ten tenants with varying lease expiration dates, ensuring long-term occupancy levels.
INCOME TAX FREE STATE
Washington State is income tax-free state.
Listing Agents:
CLAYTON J. BROWN
RUTHANNE LOAR
206.493.2622
ruthanne.loar@marcusmillichap.com
