7113 W Okanogan Pl - Office FOR SALE


Kennewick, WA 99336
$6,285,000 USD
206-826-5787
7113 W Okanogan Pl, Kennewick, WA for Sale
$6,285,000 USD
Office - FOR SALE
1/4
null | 7.16% Cap Rate

7113 W Okanogan Pl
Kennewick, WA 99336


HIGHLIGHTS

  • Washington State Government Guarantee | 5-Year Lease
  • High-Growth Submarket | Strong Rent Growth (33%)
  • Attractive 3.23% Assumable Financing | 9.22% Cash-on-Cash Return Year 1
  • Recession Proof | Essential Government Tenant
  • 2020 Construction | Built-to-Suit
  • Large 2.72 Acre Lot with Ample Parking

OVERVIEW

Marcus & Millichap’s Brown Retail Group has been selected to exclusively market for sale the Washington State Department of Social and Health Services (DSHS) facility located in Kennewick, WA, one of the fastest-growing submarkets in Eastern Washington. The property features a 10-year modified gross lease signed in 2020 with approximately 5 years remaining, guaranteed by the State of Washington (Fitch: AA+), providing investors with one of the strongest credit-backed income streams available in the market. The lease includes one renewal option at fair market rent, ensuring income growth aligned with inflation and rising costs. The property features highly attractive assumable financing at a 3.23% interest rate, resulting in a 9.22% cash-on-cash return in Year 1, with the approximately $3.774 million loan representing ~60% LTV and featuring 30-year amortization with 11 years of term remaining (maturing in 2036). The Department of Social and Health Services (DSHS) is a mission-critical arm of the Washington State government, with demand for its services often increasing during economic downturns, offering investors a recession-resilient income stream backed by essential government services. Originally constructed in 2020 as a build-to-suit for DSHS, the property has been continuously occupied since completion and is customized to its operational needs, ensuring long-term commitment to this location. The property is situated on 2.72 acres with approximately 85 parking stalls, providing abundant parking and site functionality for DSHS and any future office or service user. Within a 5-mile radius, the population has increased 16% since 2015 and rental rates have risen 33% cumulatively over the past decade (per CoStar), reflecting strong market fundamentals and sustained demand for quality assets. The property serves a community of approximately 162,170 residents within a 5-mile radius, with average household income exceeding $105,000 per year. Washington State offers the added benefit of being an income tax free state, enhancing investor returns and providing a tax efficient investment environment.

FOR SALE DETAILS

PRICE

$6,285,000 USD

PRICE/SF

$296 USD /SF

CAP RATE

7.16%

% LEASED

-

TENANCY

Single

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

WA State DSHS | 3.23% Interest Assumable Loan

PROPERTY TYPE

Office

TOTAL BUILDING SIZE

-

STORIES

1

BUILDING CLASS

A

YEAR BUILT

2020

SPRINKLERS

-

PARKING SPACES

-

LAND DETAILS

LAND ACRES

2.72 AC

LAND SF

118,483 SF

ZONING

-

APN/PARCEL ID

-

ASK ABOUT THIS PROPERTY

Clayton BrownMarcus & MillichapMore Info
206-826-5787

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Clayton BrownMarcus & MillichapMore Info
206-826-5787

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