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2408 1st Ave SSeattle, WA 98134
SODO Center
Asset ClassRetail
Cap Rate6%
% Leased: 100%Retail SF: 29,263Cap Rate: 6%Access Data Room
100% Leased, Rare Multi-Tenant Opportunity in the Heart of SoDo
overview of deal

Overview

SoDo Center is a highly desirable property located in an irreplaceable location. Situated across the street from Starbucks Global HQ, the largest coffeehouse chain in the world, the property benefits from the high employment and foot traffic generated by Starbucks. Additionally, the center is just blocks away from T-Mobile Park and Lumen Stadium, home to the Seattle Mariners, Seattle Seahawks, and Seattle Sounders, drawing millions of people for games and concerts. The property’s strategic position 1 ¼ miles south of downtown Seattle provides immediate access to major highways and the city’s bustling CBD, which is home to major tech companies like Amazon, Google, Facebook, and Salesforce.

 

The property’s location in the heart of SODO, a major commercial corridor, ensures strong business demand from various industries. SODO has experienced significant development and transformation, with the presence of Starbucks HQ, sports stadiums, and recent multi-family, office, and hotel developments. The property is 100% leased, providing stability and ease of management, and the tenants have contracted annual rental increases, ensuring solid NOI growth. The property also benefits from high-density and high-income trade area, with average household incomes exceeding $140,000 within a 1-mile radius and projected to increase by 20% over the next 4 years. The center enjoys premium visibility and access, located directly off 1st Ave S with over 25,000 VPD passing in front of it. Furthermore, the property benefits from the upcoming link light rail expansion, with two nearby stations providing convenient transportation options for the region. Overall, SoDo Center offers a rare and highly sought-after investment opportunity in Seattle.

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Investment Highlights

Cap Rate
6%
% Leased
100%
Retail SF
29,263
# Tenants
5

IRREPLACEABLE LOCATION

  • Across the street from Starbucks Global HQ: Starbucks is the largest coffeehouse chain in the world with more than 350,000 stores globally and is one of the largest employers in Washington State. Nearly 4,000 people are employed at the Starbucks Seattle HQ building.
  • Blocks from T-Mobile Park and Lumen Stadium drawing significant traffic on 1st Ave at the site: T-Mobile Park is home to the MLB team Seattle Mariners, drawing nearly 3 million people for home games over the season. The park also hosts many concerts throughout the year with shows from some of the most popular artists in the world.
  • Lumen Stadium is home to the NFL team Seattle Seahawks and MLS team Seattle Sounders, drawing more than 2 million people for home games over the 2023 season. Lumen is also host to many concerts throughout the year with shows from some of the most popular artists in the world.
  • 1 ¼ miles south of Seattle CBD: Seattle has been one of the fastest-growing large cities in the country over the past decade. The city is headquarters to the largest e-commerce company in the world and the state’s largest employer, Amazon, and has become one of the strongest tech hubs in the U.S. Many fortune 500 companies have a footprint in downtown Seattle including Google, Meta, and Salesforce.
  • Immediate access to Highway 99, Interstate 5, and I-90: Highway 99 and I-5 are the major north-south arteries for the Puget Sound with traffic levels over 80,000 and 250,000 respectively: I-90 is the major east-west freeway for the State and provides direct connectivity to the Eastside with over 145,000 VPD. Positioned on 1st Ave S with traffic levels over 25,000 VPD directly in front of the Center.

100% LEASED

  • SODO Center is 100% leased providing stability and ease of management. This is a testament to the quality and location of the Center.

NNN LEASES

  • All 5 tenants are on NNN leases with minimal landlord responsibilities.

 

NOI GROWTH/ANNUAL CONTRACTED RENTAL INCREASES

  • The tenants have contracted annual rental increases ranging from 3%-5% throughout initial lease terms providing solid NOI growth.

SEVERE BARRIERS TO ENTRY

  • Penetrating and securing a multi-tenant asset in Seattle, on 1st Ave S is extremely rare.

RECENT CAPITAL IMPROVEMENTS

  • Over $1M in capital improvements including:
  • New roof with a 15-year warranty (complete “tear-off” and replacement)
  • Updated electrical where needed. New 625 AMP/480 Volt service separately distributed
  • Building painted
  • Replaced wastewater line
  • Copiers NW and Pho Cyclo spaces are fully renovated and refurbished. Included Tenant investment as well.

SODO/STRONG BUSINESS DEMAND

  • The Center is located in the heart of SODO which is a major commercial corridor containing retail, warehouse, office, multi-family, and industrial uses creating strong demand from multiple business lines needing to locate in the district. SODO was originally Seattle’s close-in industrial district but has since experienced major changes with the development of Starbuck’s world HQs, Lumen Field and T-Mobile Park, and more recent multi-family, office, and hotel developments. The transition SODO has experienced, and demand from multiple business uses, has continued to drive rents, occupancy, and development in the trade area.

HIGH-DENSITY, HIGH-INCOME TRADE AREA

  • Average household incomes exceed $140,000 within 1-mile of the Center
  • There’s over 225,000 people within 3 miles of the Center
  • By 2028 there will be over 460,000 people and average household incomes of nearly $200,000 within 5 miles of the Center

PREMIUM VISIBILITY AND ACCESS

  • The Center is located directly off 1st Ave S, with strong visibility and street parking. There are over 25,000 VPD passing directly in front of the Center.

SEASONED TENANCY

  • Bayside Supply has operated at the Center for 30 years
  • Overnight Printing has operated at the Center for 10 years
  • Pho Cyclo has operated at the Center for 15 years
  • Sodo Poke has operated at the Center for 4 years

LINK LIGHT RAIL

  • Sound Transit has embarked on a $142 billion link light rail expansion that will create a 252-mile regional network connecting communities across Pierce, King, and Snohomish Counties.
  • SODO Center is located half a mile from Sodo link light rail station and 1-mile from the Stadium link light rail station, providing direct and convenient transportation to the region
2408 1st Ave SSeattle, WA 98134

Contact Information

Paul SleethExecutive Managing Director2064095624paul.sleeth@nmrk.com
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Listing provided by Revere CRE