New Listing
Cap Rate
5.40%
Offering Price
$5,740,000
Year Built
2018
Building Size
20,000 SF
Price Per SF
$287/SF
Type
For Sale
Status
New Listing
Location
Tumwater, WA

Investment Summary

Kidder Mathews is pleased to offer for sale a new construction, single tenant Smart Foodservice investment property. The property is a build to suit for Smart Foodservice (formerly Cash & Carry) and is scheduled to open for business in November 2018. The tenant will sign a 15 year lease at closing that includes four, 5-year renewal options and 7.5% rent increases every 5 years throughout the initial term and options. The site is located off Interstate 5 in Tumwater, Washington and is surrounded by a strong mix of residential and retail properties, including Walgreens, Fred Meyer, Costco, Walmart, and Home Depot. The Olympia-Lacey-Tumwater region recently ranked in the top 25 fastest growing metro areas according to a recent U.S. Census report. Tumwater is located 60 minutes south of Seattle. The MSA includes a population of over 270,000 residents.


This is an excellent passive investment that is well suited for a 1031 exchange. Minimal landlord responsibilities and new construction will limit any near-term maintenance on the building that the landlord would be responsible for.


Smart Foodservice (formerly Cash & Carry) provides foodservice supplies to businesses, non-profit organizations, and households. Headquartered near Portland, Oregon, Smart Foodservice is a wholly owned subsidiary of Smart & Final Stores, Inc. and has operated throughout the Northwest for more than 60 years. The division currently has 64 wholesale stores located in Washington, Oregon, California, Idaho, Montana, Nevada and Utah catering to the foodservice industry.

Investment Highlights

LONG TERM NNN LEASE

The lease will commence upon close of escrow with 15 years of initial term and four 5 year options with rent increases throughout both the initial term and options to extend.

CONTRACTED RENT INCREASES

With the embedded rent increases, the net operating income is contracted to increase to $358,243.75 (15.56%) over the initial term, providing a hedge against inflation compared to many net lease investments with flat, zero rent growth lease structures.

LOW MANAGEMENT

Single tenant, triple-net (NNN) lease with Smart Foodservice; landlord is responsible for roof and structural repairs, however, the brand new development consists of a 15 year roof warranty making this a simple, passive investment.

HIGH TRAFFIC LOCATION

The property benefits from the easy access off of Interstate 5 Exit 102 with 108,000 vehicles per day passing and 27,760 vehicles per day on Trosper Road.

GROWING MARKET

The Olympia-Lacey-Tumwater region recently ranked in the top 25 fastest growing metro areas according to a U.S. Census report. Tumwater is located 60 minutes south of Seattle. The MSA includes a population of over 270,000 residents.

Property Summary

Offering Price
$5,740,000
CAP Rate
5.40%
Year Built
2018
Building Size
20,000 SF
Price Per SF
$287/SF
Address
710 Trosper Rd SW, Tumwater, WA, 98512

Market Summary

The offering is located in the city of Tumwater, 60 miles south of Seattle in Thurston County, Washington. Tumwater closely neighbors the state capital of Olympia and the city of Lacey, forming a community of over 100,000 in population. The property is situated in Tumwater’s retail core along I-5, which boasts national retailers such as Costco, Fred Meyer, Walmart, Albertsons, Walgreens, MultiCare Health Systems, and many more. Tumwater is in close proximity to strong employment centers such as the state capital, Providence Saint Peter Hospital, and the Joint LewisMcChord Air Force Base - the largest military installation in the United States. Forbes Magazine ranked Thurston county as one of the top ten places in the country to do business twice in the last 5 years. This is largely due to the county’s high performance in cost of living, job growth, recreational and cultural opportunities, and scholastic achievement. The population in Thurston county has been one of the fastest growing counties in the state, with an average 2% population increase over the past decade. 

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