Wapato International Market

Investment Overview

THIS OFFERING presents the opportunity to acquire a stabilized retail investment featuring a thriving owner-operated grocery store. The seller plans to sale-leaseback at $9.75/SF/Yr. NNN with 2.5% annual rent escalations. The current lease term extends for ten years and includes four consecutive five-year renewal options, providing investors with durable, long-term income stability. The tenant is a well-established regional operator with an investment-grade credit profile and a proven operating history at this location, as well as ownership and operation of six additional grocery stores throughout Washington State. The investment is offered at an attractive 8% cap rate and includes an additional adjoining tax parcel combining for approximately 116,740 square feet. The primary parcel consists of approximately 82,328 square feet and is zoned B-1 (Neighborhood Business District), while the adjacent parcel is just under one acre at approximately 34,412 square feet and is zoned M-1 (Light Industrial), providing flexibility for future use, expansion, or ancillary development upon lease expiration. Strategically positioned at one of the Lower Yakima Valley’s most prominent and highly trafficked intersections — West 1st Street and U.S. Highway 97 — the property benefits from exceptional visibility, strong daily vehicle counts, and established retail synergy. Surrounding national and regional tenants include O’Reilly Auto Parts, McDonald’s, DaVita Dialysis, and the nearby Wolf Den retail hub, reinforcing the location’s role as a dominant neighborhood and commuter-oriented retail destination. With its combination of long-term contractual income, strong tenant credit, high-exposure location, and additional land component offering future upside, this asset represents a compelling opportunity for investors seeking secure cash flow with long-term growth potential and rental escalations. We are assuming a 5% vacancy and credit loss factor and 2% capital replacement reserves to arrive at the marketed NOI which will be reflected in the lease.

Investment Highlights

• Stabilized retail investment anchored by a high-performing grocery store tenant
• Long-term NNN lease to be negotiated at $9.75/SF, NNN with 2.5% annual escalations for 10 years with four consecutive five-year renewal options providing potential for durable, long-term income
• Investment-grade regional grocery operator with a proven operating history at the site
• Tenant operates seven additional grocery locations across Washington State, demonstrating operational depth and market presence
• Attractive in-place cap rate of approximately 8%
• Offering includes the adjoining M-1 tax parcel collectively totaling approximately 116,740 square feet
• Primary parcel: ±82,328 SF zoned B-1 (Neighborhood Business District)
• Additional parcel: ±34,412 SF (just under one acre) zoned M-1 (Light Industrial), providing future expansion, development, or ancillary income potential
• Premier location at the signalized intersection of West 1st Street and U.S. Highway 97 in the Lower Yakima Valley
• Exceptional visibility and strong daily traffic counts supporting long-term tenant performance
• Established retail corridor with national and regional co-tenancy including O’Reilly Auto Parts, McDonald’s, DaVita Dialysis, and the nearby Wolf Den retail hub
• Property benefits from strong neighborhood integration and commuter-oriented retail demand
• Additional land component creates potential upside through future redevelopment or complementary uses