1120-1264 Lancaster Dr SE - Storefront FOR SALE


Salem, OR 97317- Southeast Mill Creek
$19,680,000 USD
206-693-3352
1120-1264 Lancaster Dr SE, Salem, OR for Sale
$19,680,000 USD
Storefront - FOR SALE
1/9
null | 8% Cap Rate

1120-1264 Lancaster Dr SE
Salem, OR 97317
Southeast Mill Creek


HIGHLIGHTS

  • Shadow anchored by a high-performing WinCo, which ranks in the top five in Oregon for annual visits (2.2M) and does $100M+ in annual sales, per Placer
  • Brand-new 10-year NNN lease with Urban Air, secured by a personal guarantee from the operator
  • The Center is 97% occupied with a WALT of 7.33 years
  • Located on a signalized corner of Lancaster Dr, a primary retail corridor with daily vehicle counts above 30,000
  • Nine of the ten tenants have contractual rent increases, of which seven are annual
  • Fresh coat of paint on the entire exterior of the Anchor + In-Line portion of the center

OVERVIEW

The Property is a stabilized, 97% leased retail center anchored by Sportsman’s Warehouse, which has occupied their space since 2002 and welcomes over 250,000 visits per year (Placer.ai). It is shadow anchored by a top-performing WinCo, which ranks among the top five in Oregon for annual visits (2.2M) and does well over $100M in annual sales, per Placer.ai. A new 10-year NNN lease with Urban Air provides secure cash flow backed by a personal guaranty, contributing to a weighted average lease term of 7.33 years. Six of the ten tenants have occupied their suites for over 10 years, including three with more than 20 years of tenancy, demonstrating long-term historical occupancy and tenant stickiness. Current income provides strong year one returns with a cash-on-cash return of 11.04%, based on quoted debt terms. The Offering comprises the anchored in-line center and a 4-unit strip retail pad with the center’s sole vacancy. Current ownership put the entire center in a condo map, with the in-line center and strip retail pad being separate units. At 64% occupied, the pad provides new ownership with both a value-add and potential spinoff opportunity upon lease-up of the final vacancy. The Property benefits from significant visibility and access, positioned at a signalized intersection on Lancaster Drive with daily traffic exceeding 30,000 vehicles, and adjacent to the N Santiam Hwy/I-5 interchange with over 180,000 vehicles per day. Nine of the ten tenants have contractual rent increases, including seven with annual escalations, providing built-in yield growth. Recent capital improvements include a full exterior repaint of the anchor and in-line building façades.

FOR SALE DETAILS

PRICE

$19,680,000 USD

PRICE/SF

$180 USD /SF

CAP RATE

8%

% LEASED

-

TENANCY

Multiple

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

Lancaster Marketplace

PROPERTY TYPE

Retail

PROPERTY SUBTYPE

Storefront

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1991

SPRINKLERS

-

PARKING SPACES

359

LAND DETAILS

LAND ACRES

8.17 AC

LAND SF

355,885 SF

ZONING

Commercial

APN/PARCEL ID

580550,580555

ASK ABOUT THIS PROPERTY

Sean TuftsNorthmarqMore Info
206-693-3352

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Sean TuftsNorthmarqMore Info
206-693-3352

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.