Kennewick Village 7 Properties Offered at $13,959,200 CAD in Kennewick, WA

Marcus & Millichap's Brown Retail Group has been selected to exclusively market for sale Kennewick Village, a value-add retail shopping center located in rapidly growing Kennewick, WA. The property is 99% occupied and is spread across 11 tax parcels in four sections along Hwy 395, Vista Way, and W Bruneau Pl. Over 51% of the GLA of the property is operating on month-to-month Modified Gross leases with the majority of remaining tenants operating on short-term leases with no options. The average base rent at the property is currently $11.23/SF MG, with market rents achievable in the $13-$15/SF NNN range, providing an investor with the opportunity to increase their cap rate to above a 10% cap rate through rent increases and converting lease types to NNN. The Seller is willing to provide attractive seller financing at a 4.00% interest rate with a 70% loan-to-value and a 5-year term, providing a cash-on-cash return of 11.22% in Year 1. The eleven separate tax parcels enable a parcelization strategy for enhanced returns, while a cost segregation study projects $2.1+ million in first-year bonus depreciation benefits. Over 50% of the GLA is leased by tenants that have been at the property for over 5 years, showing strong commitment to the site. The property is located across the street from Highlands Center (top 7% nationally, 1.4M annual visitors, per Placer.ai) and Kennewick Plaza (top 4% nationally, 1.8M annual visitors, per Placer.ai) providing continuous traffic flow. The property is grocery anchored, providing a consistent customer draw, and is occupied with a mix of grocery, restaurant, service and daily needs retailers offering a diversified income stream. The Property is located on Hwy 395 (35,700+ VPD) and near both W Clearwater Ave (22,000+ VPD) and SR 240 (44,000+ VPD), providing easy access to the property and excellent visibility. Within a 5-mile radius, the population has increased by nearly 5.5% since 2020 and houses roughly 175,000 residents, with the population projected to grow another 7.9% in the next five years. Washington State offers the added benefit of being an income tax free state, enhancing investor returns and providing a tax efficient investment environment.