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Investment Highlights

  • Absolute Net (NNN) Lease Structure – tenant responsible for operating expenses
  • New 5-Year Lease Executed at Closing - The tenant has agreed to execute a new five-year lease at closing with two additional five-year options
  • Newly Completed Industrial Facility with modern design and construction, 100kW Solar Array reducing operating costs • 3-Phase 600A 480/277 Power
  • Stabilized Income – approximately $384,954 annual NOI
  • 5.50% IN PLACE Cap Rate on new construction
  • 18,141 SF Total Building Area 10,837 SF Office | 7,304 SF Warehouse 0.92 Acre Site with 40 Parking Spaces

Executive Summary

ABSOLUTE NET INVESTMENT - The tenant is the original developer and builder of the facility, representing a rare level of tenant commitment and long-term operational investment in the property.
15205 SW Arrow Street presents an opportunity to acquire a newly constructed, stabilized industrial investment in the highly desirable Sherwood industrial submarket. Completed in 2023 and now fully occupied by the ownership group operating their business from the facility, the property is being offered as an Absolute Net investment, providing investors with predictable passive income and minimal landlord responsibilities.
Lease Structure - The current tenant has successfully operated their business from the property since the building’s completion and has demonstrated the ability to support all operating expenses under the Absolute Net structure. Although the existing lease has approximately three years remaining, the tenant (who is also the current ownership group) has agreed to execute a new five-year lease at closing with two additional five-year renewal options, providing the purchaser with a renewed lease horizon and long-term occupancy stability.
The building totals 18,141 square feet, consisting of approximately 10,837 SF of modern office and 7,304 SF of warehouse space, situated on 0.92 acres with 40 on-site parking spaces. The facility features high-end steel construction, modern architectural design, and a highly functional industrial layout.
With strong in-place income of approximately $384,954 annually, the offering represents a ~5.50% capitalization rate on a brand-new building with significant remaining lease term and contractual rent increases.
This investment provides a rare opportunity to acquire new-generation industrial product with stabilized occupancy, passive income, and minimal management requirements in one of the Portland metro area’s strongest industrial markets.
Situated in the thriving Portland market, the area surrounding the property is known for its robust industrial, warehouse, and distribution landscape. Portland offers access to exceptional transportation infrastructure, including major highways and a well-connected rail network, facilitating seamless distribution and logistics operations. With a strong and diverse labor pool, the area provides ample employment opportunities to support industrial endeavors. Nearby points of interest include major transportation hubs, distribution centers, and industrial parks, showcasing the strategic importance of this location for businesses looking to expand or establish a presence in the Portland market.

Property Facts

Price $9,616,040 CAD
Price Per SF $530.07 CAD
Sale Type Investment NNN
Cap Rate 5.50%
Property Type Industrial
Property Subtype
Manufacturing
  • Industrial Distribution
  • Industrial Warehouse
  • Industrial Service
Building Class B
Lot Size 0.92 AC
Rentable Building Area 18,141 SF
No. Stories 2
Year Built 2023
Parking Ratio 2.2/1,000 SF
Clear Ceiling Height 35’11”
No. Drive In / Grade-Level Doors 4
Zoning LI - Light Industrial (LI) Zoning – Sherwood, Oregon

Amenities

  • Controlled Access
  • Conferencing Facility
  • Front Loading
  • Mezzanine
  • Security System
  • Signage
  • Skylights
  • Reception
  • Storage Space
  • Air Conditioning
  • Fiber Optic Internet
  • Smoke Detector
  • Breakroom
  • On-Site Power Generation

Utilities

  • Lighting
  • Gas
  • Water
  • Sewer
  • Heating
Fairly walkable
40/100
Very drivable
80/100
Limited public transit
30/100
Fairly bikeable
40/100

Property Taxes

Property Taxes

Parcel Number
R2151074
Land Assessment
$0 CAD
Improvements Assessment
$0 CAD
Total Assessment
$3,754,137 CAD
  • Listing ID: 31641651

  • Date on Market: 2024-04-29

  • Last Updated:

  • Address: 15205 SW Arrow St, Sherwood, OR 97140

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