Under Contract
Cap Rate
6.90%
Offering Price
$13,340,000
Year Built
1980
Building Size
45,906 SF
Price Per SF
$291/SF
Type
For Sale
Status
Under Contract
Location
Olympia, WA

Investment Summary

Black Lake Village is a retail investment opportunity located in Olympia, Washington. Olympia is the state capital and Washington’s fifth largest city. 


This investment is comprised of four single tenant stand alone buildings and two multi-tenant retail shops buildings. 


The center is 85.3% occupied and provides an investor a 6.90% cap rate on current in-place income. An investor will enjoy the stability of national tenants including Panera Bread, Mattress Firm, CosmoProf (Sally Beauty) on long term net leases, plus the ability to add value through stabilization of the remaining vacant space in the strip retail portion of the center. Furthermore, Outback Steakhouse recently renovated their 6,355 square foot space (see page 20 for more information). With additional improvements to the shop space facade and storefront signage, average rents can be increased from $18.37 per square foot to $20-24 per square foot. 


Outback Plaza is situated at signalized intersection directly across from the 860,000-square foot Capital Mall, which in 2016 reported a robust $393 per square foot of gross sales. Capital Mall is anchored by major national retailers including Dicks Sports, Macy’s, JCPenney, Bed Bath & Beyond, Best Buy and H&M. 

Investment Highlights

VALUE-ADD PROPERTY WITH EXCELLENT INITIAL YIELD

The property is currently 85% occupied, providing an opportunity to increase yield upon stabilization and repositioning.

STRONG TENANTS

The property is 51% leased by national tenants including Panera Bread, Mattress Firm, Cosmo Prof (Sally Beauty Holdings), and Outback Steakhouse.

BELOW MARKET RENTS

The shop space rents average $18.37 per square foot. Market rents range from $20 to $25 per square foot.

LONG-TERM STABILITY

42% of the tenancy has been in the center for more than 10 years.

IRREPLACEABLE RETAIL LOCATION

Black Lake Village is conveniently located at the signalized corner of Capital Mall Drive and Black Lake Boulevard and achieves combined traffic counts in excess of 35,000 vehicles per day.

Property Summary

Offering Price
$13,340,000
CAP Rate
6.90%
Year Built
1980
Building Size
45,906 SF
Price Per SF
$291/SF
Address
2627 Capital Mall Drive Southwest, Olympia, WA, 98502

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