Sales Price: $6,400,000
Cap Rate: 5.54%
Term Remaining: 11 years
Rate Increases: 10% every 10 years
Another off-market deal sourced and closed on behalf of our 1031 exchange client. At NLX, we pride ourselves in the relationships we maintain throughout the country, which allows our clients access to inventory that never sees the light of day. In this case, the off-market property consisted of a Rite Aid in Renton, WA offering a long term, absolute triple net lease with rare 10% rent increases in the base term and option periods. The below-market rent the tenant is paying, coupled with the superior positioning relative to other Rite Aid locations in the submarket means this asset will continue to perform as a drugstore for many years to come. It doesn’t hurt that the adjacent parcel is being redeveloped into high density condo and multifamily as well.
- Built in 2000 and consisting of roughly 16K RSF on 1.5+ acres, this was originally a sale leaseback by Rite Aid. The current rent of $21/SF is well below the market rent of $28-$32/SF for the area. This location benefits from a double drive-thru, and sits on a hard corner with 27K VPD. Adjacent to the property is a new 7-story, 500+ unit mixed-use development. There are over 20K people in a 1-mile radius of this Rite Aid, with an average household income of approx. $130K.