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Foss Audio | Prime Location | Short-Term Lease w/ Below Market Rent
512 Strander Blvd, Tukwila, WA 98188
Listing Price: $4,295,000
Investment Overview
Marcus & Millichap's Brown Retail Group has been exclusively selected to market for sale Foss Audio, a prime location opportunity featuring a short-term lease with below market rent and a fair market rent option. The Tenant is currently paying just $10.74/SF + NNN with market rents achievable in the $19-$22/SF + NNN range. The Tenant’s option in 3 years is at Fair Market Rent (FMR), allowing an investor near-term upside well above an 8% cap rate by simply increasing rent to market. The Property is zoned TUC-TOD (Tukwila Urban Center - Transit Oriented Development) which permits numerous commercial uses including retail, office, hospitality, multifamily, senior housing, government, education, and transportation uses. If the tenant were to leave at the end of its lease term and option term, a new owner would be able to backfill the space with a tenant from nearly any business sector or redevelop the property into a higher and better use opportunity. Foss Audio is only two blocks from Westfield Southcenter Mall, the # 1 performing mall in Washington State and #6 nationally (Placer.ai), which boasts in excess of 14.9 million visitors annually. The Property is also located just a 20-minute drive to both downtown Seattle and downtown Bellevue. Foss Audio is roughly a 7-minute drive from Seattle-Tacoma International Airport, the largest international airport in Washington State with 19 million visitors per year. Located in the dense and rapidly growing Tukwila, WA submarket, the Property benefits from a population of over 287,000 residents within a 5-mile radius. Since 2010 the population has grown over 11% within a 5-mile radius and nearly 32% within a 1-mile radius.
Investment Highlights
- PRO-FORMA 8.80% CAP RATE - FAIR MARKET RENT IN LEASE OPTION
- TENANT IN PLACE WITH STRONG HISTORICAL OCCUPANCY
- PRIME LOCATION
- HIGH-TRAFFIC, HIGH-VISIBILITY LOCATION
- FLEXIBLE ZONING ALLOWING NUMEROUS USES / LOCATED NEAR SEATTLE, BELLEVUE, AND SEATTLE-TACOMA INTERNATIONAL AIRPORT (SEA)
- HIGH BARRIER-TO-ENTRY MARKET WITH STRONG RENT GROWTH (9.5%)
- DENSE DEMOGRAPHICS / HIGH-GROWTH POPULATION SUBMARKET
- NNN LEASE / MINIMAL LANDLORD RESPONSIBILITIES
Exclusively Listed By
Financing By
Auto Parts
Foss Audio | Prime Location | Short-Term Lease w/ Below Market Rent
Listing Price: $4,295,000
Investment Highlights
- PRO-FORMA 8.80% CAP RATE - FAIR MARKET RENT IN LEASE OPTION
- TENANT IN PLACE WITH STRONG HISTORICAL OCCUPANCY
- PRIME LOCATION
- HIGH-TRAFFIC, HIGH-VISIBILITY LOCATION
- FLEXIBLE ZONING ALLOWING NUMEROUS USES / LOCATED NEAR SEATTLE, BELLEVUE, AND SEATTLE-TACOMA INTERNATIONAL AIRPORT (SEA)
- HIGH BARRIER-TO-ENTRY MARKET WITH STRONG RENT GROWTH (9.5%)
- DENSE DEMOGRAPHICS / HIGH-GROWTH POPULATION SUBMARKET
- NNN LEASE / MINIMAL LANDLORD RESPONSIBILITIES
Investment Overview
Marcus & Millichap's Brown Retail Group has been exclusively selected to market for sale Foss Audio, a prime location opportunity featuring a short-term lease with below market rent and a fair market rent option. The Tenant is currently paying just $10.74/SF + NNN with market rents achievable in the $19-$22/SF + NNN range. The Tenant’s option in 3 years is at Fair Market Rent (FMR), allowing an investor near-term upside well above an 8% cap rate by simply increasing rent to market. The Property is zoned TUC-TOD (Tukwila Urban Center - Transit Oriented Development) which permits numerous commercial uses including retail, office, hospitality, multifamily, senior housing, government, education, and transportation uses. If the tenant were to leave at the end of its lease term and option term, a new owner would be able to backfill the space with a tenant from nearly any business sector or redevelop the property into a higher and better use opportunity. Foss Audio is only two blocks from Westfield Southcenter Mall, the # 1 performing mall in Washington State and #6 nationally (Placer.ai), which boasts in excess of 14.9 million visitors annually. The Property is also located just a 20-minute drive to both downtown Seattle and downtown Bellevue. Foss Audio is roughly a 7-minute drive from Seattle-Tacoma International Airport, the largest international airport in Washington State with 19 million visitors per year. Located in the dense and rapidly growing Tukwila, WA submarket, the Property benefits from a population of over 287,000 residents within a 5-mile radius. Since 2010 the population has grown over 11% within a 5-mile radius and nearly 32% within a 1-mile radius.