Staples

1740 North National Avenue, Chehalis, WA, USA

$3,245,000 · 7,25 · 10 years · NN

Offering Memorandum

Exclusively Offered by

Niko Micin

Investment Analyst
niko@agmnetlease.com
206.210.5208

Bosko Stankovic

Investment Sales
bosko@agmnetlease.com
646.416.2042

SALE PRICE: $ 3,245,000

CAP RATE: 7,25%

NOI: $ 235,240

LEASE TYPE: NN

LEASE TERM REMAINING: 10+/- years remaining

LEASE EXPIRATION: February 29, 2032

OPTIONS: One 5-year option

RENTAL ESCALATIONS: 21% in the next option

RENTABLE SF: 23,542 SF

LOT SIZE: 1.65 Acres

YEAR BUILT: 2000

OWNERSHIP TYPE: Fee Simple

Subject property is a 23,542 SF freestanding building located on a hard corner and subject to a 15 year NN lease with approximately 4+/- years remaining on the term. Staples Inc. was recently acquired by Sycamore Partners Inc., a private equity company. Staples has been successfully operating at this location for over 18 years and is one of the top performing stores in the state. Staples signed a 15-year NN lease in 2000. Staples has exercised their second option and has only two 5-year options remaining with rental escalations, further showing commitment to the site.

The subject property is located on the East side of the I-5, the main arterial connecting Canada to Mexico. Chehalis is approximately half way between Seattle and Portland and the subject store serves the area within a 30- mile radius which is why the store ranks among top 3 in the state. Area is a retail hub with a strong national tenant roster including Walmart, Home Depot, Walgreens, Wendy’s, O’Reillys, Starbucks, Big 5, Sonic, Applebee’s, McDonald’s, True Value, U-Haul, Michaels, Grocery Outlet, Maurices, Rue 21, Little Caesars, Jiffy Lube, GameStop, Great Clips, Dutch Bros, Tractor Supply etc

Investment Highlights

  • • The only national office supply store within a 30 mile radius
  • • Staples recently renewed the lease for 10 years showing commitment to the location (10+/- years remaining)- VERY RARE
  • • One of the top performing stores in Washington State – ranked 4th out of 20 stores 
  • • Low rent at $10.00/SF
  • • Below replacement cost at $138/SF
  • • Minimal Landlord responsibilities
  • • Institutional quality construction
  • • High traffic count, 66,500 ADT on Interstate 5
  • • Staples, Inc. was recently acquired by Sycamore Partners Inc., a private equity firm