INVESTMENT HIGHLIGHTS
VALUE-ADD OPPORTUNITY - PRO-FORMA 10.22% CAP Rate (BELOW MARKET RENTS)
Approximately 74% of the GLA at the Property is paying an average rent of $17.00/ SF Modified Gross in rent, with market rents achievable in the $20-$24/SF + Modified Gross, providing an investor with upside to over a 10.00% cap rate after rents are increased to market.
92% LEASED BUSINESS CENTER WITH STRONG HISTORICAL OCCUPANCY
The Property is currently 92% occupied with one vacant suite. Nearly 80% of the GLA has occupied the Property for more than 6 years.
STAGGERED LEASE EXPIRATION DATES
The Property features a total of 19 tenants with varying lease expiration dates, supporting long-term occupancy levels. In addition, nearly half of the tenants have been at the Property for over five years.
STRATEGIC LOCATION ADJACENT TO VANCOUVER MALL (5.9M+ ANNUAL VISITORS) AND VARIOUS NATIONAL TENANTS
The Property is strategically located adjacent to the Vancouver Mall which receives over 5,900,000 visitors annually with an increase in customer visits by over 10% over the last two years (per Placer.ai). The Property benefits from its proximity to various national tenants including Hobby Lobby, Gold’s Gym, Target, Harbor Freight, DaVita, Best Western, Days Inn, etc. as well as being surrounded by residential neighborhoods and apartments, including Autumn Grove (148 units) and Silver Oak (204 units).
AFFLUENT, HIGH POPULATION GROWTH SUB-MARKET
Within a 5-mile radius, the population has grown by over 22% since 2011 to over 285,000 residents and is projected to increase by another 5.4% in the next 5 years, with average household incomes of nearly $109,000, well above the national average. Within a 1-mile radius of the subject property, the population has grown by over 16% since 2011.
STRONG RENT GROWTH (2.21% annually) AND HIGH BARRIER-TO-ENTRY MARKET
The Vancouver/Portland submarket rents have increased a cumulative 2.21% over the past year, per CoStar. The submarket currently boasts a 3.5% vacancy rate with new development decreasing by 35% year-over-year. The development lull creates a high barrier to entry market and demand for space remains high.
EXCELLENT BUSINESS LOCATION ADJACENT TO SR 500 AND I-205 EXITS
The Property is located off of the I-204 and SR 500 interchange seeing a combined 164,200+ VPD, providing excellent visibility and access to the Property.
STRATEGICALLY LOCATED ADJACENT TO MAJOR TRANSIT CENTER
The Property is located adjacent to the Vancouver Mall Transit Center, supplying convenient public transportation options to people in need with easy access across the region. In 2022, fixed route passenger boardings increased by approximately 14.5% (3,796,727 passengers).
HIGH-QUALITY CONCRETE BLOCK CONSTRUCTION
The Property features high-quality concrete block construction across all six buildings at the business park.
INCOME TAX-FREE STATE
Washington State is an Income Tax-Free State.
Listing Agents:
CLAYTON J. BROWN
