Johnson Building

Investment Overview

The Johnson Building presents a rare opportunity to acquire a fully leased, income-producing multi-tenant retail and office property in the heart of downtown Tigard, Oregon. Offered at $2,350,000 ($236/SF), this approximately 9,950 SF single-story building delivers immediate cash flow from six diverse tenants at a compelling 6.72% in-place cap rate on Year 1 NOI of $158,031. With a 1.50x debt service coverage ratio, 50% LTV financing assumption, and a projected 10-year equity IRR of 11.82%, the property offers exceptional risk-adjusted returns. Located within a federally designated Opportunity Zone and Tigard’s Urban Renewal/TIF District, investors benefit from the City’s $42.8M public investment program (active through FY 2035-36), the Johnson Building benefits from substantial public investment in the surrounding streetscape and infrastructure. Zoned MU-CBD -- Tigard’s most flexible commercial designation -- the property offers significant long-term upside through rent growth and redevelopment potential. For investors seeking immediate income, positive leverage, Opportunity Zone benefits, and long-term appreciation in one of Oregon’s most actively revitalizing downtowns, the Johnson Building is a compelling, must-see investment.

Investment Highlights

• IMMEDIATE INCOME - 100% leased at acquisition; six tenants; Day-one NOI of $158,031 at a 6.72% cap rate
• BELOW-MARKET RENTS - Tenants between $13.80/SF and $16.80/SF are well below current market, with leases expiring 2026-2027. Immediate rent upside built in
• Qualified Census Tract (QCT) - Located within HUD-Designated Qualified Census Tract 307 — this designation, combined with the property’s Opportunity Zone status, creates a dual federal incentive layer supporting both tax-advantaged investment and future mixed-use/residential redevelopment potential on the site
• OPPORTUNITY ZONE & TIF DISTRICT - Federally designated. City of Tigard’s $42.8M Urban Renewal Plan (through FY 2035-36) funds public infrastructure, streetscape, and catalytic development directly benefiting Main Street
• MAIN STREET GREEN STREET - City streetscape investment directly enhances pedestrian environment and curb appeal
• ON-SITE PARKING - 22 spaces (2.2/1,000 SF) is an above-average downtown Main Street parking ratio, driving tenant demand and retention
• WITH IN 10 MIN - 132k people, $105k median HH income, 61% age 18-64