Offered at $10,250,000 | 16330 & 16390 Cleveland Street (Redmond) / 4822 California Avenue SW (West Seattle)
EXECUTIVE SUMMARY
THE OFFERING
Lee & Associates Commercial Real Estate Services, LLC (“Lee & Associates”) is pleased to present an exclusive opportunity for investors to acquire a remarkable three-property portfolio. Located at 16330 Cleveland Street and 16390 Cleveland Street in Redmond, Washington, along with 4822 California Avenue SW in West Seattle, this portfolio represents a perfect opportunity for an investment buyer to acquire core king county assets within the highly sought after markets of Downtown Redmond and West Seattle.
The Redmond Assemblage at 16330 & 16390 Cleveland Street, is located in the middle of Downtown Redmond, conveniently across from the Redmond Sound Transit Station, and fully leased to Origins Cannabis and Prime Steakhouse. Origins Cannabis is a locally owned and operated retail marijuana shop known for its commitment to quality products and an exceptional customer experience. Prime Steakhouse is a Redmond favorite offering a contemporary twist on the classic American steakhouse. The 6,919 square feet of buildings situated on 19,198 square feet of prime developable land present an enticing blend of immediate rental income and long-term transit-oriented redevelopment potential.
4822 California Avenue SW, Seattle is a single tenant retail building located along West Seattle’s California Avenue. The 3050 square foot building is currently under renovations, and upon completion will serve as the relocated retail storefront of Origins Cannabis West Seattle. Similarly to Redmond, this well-located asset will provide the investor with immediate rental income and long-term redevelopment potential in one of Seattle’s prime neighborhoods.
SALE PRICE: $10,250,000
INVESTMENT HIGHLIGHTS
PURCHASE PRICE: $10,250,000
CAP RATE: 7.5%
TENANT OVERVVIEW
ORGINS CANNABIS
Founded in 2016, Origins Cannabis stands as a leading marijuana retailer, offering premier products and exceptional service. With locations in Redmond and West Seattle, as well as four retail locations in California (operating as Rose Mary Jane), three in Oklahoma, and one in Maine (operating as Rose Mary Jane), Origins Cannabis has established itself as a trusted name in the industry. Additionally, Origins has expanded into cultivation of marijuana products in Oklahoma and Maine.
Origins Cannabis has achieved exceptional revenues that surpass $10,000,000 annually from its two locations. The company foresees continued growth and improvement in the coming years, driven by its excellent operating track record, brand awareness, and strong loyalty from its customer base. Moreover, the presence of significant barriers to entry for new retailers in the market minimizes the risk of new entrants disrupting Origins’ market share.
Washington State boasts the third-largest cannabis market in the USA, with an estimated worth of approximately $1.5 billion. This market is expected to expand further, reaching $2.1 billion by 2025, creating exciting opportunities for Origins Cannabis to thrive and further solidify its position as an industry leader.
PRIME STEAKHOUSE
Prime Steakhouse is a contemporary version of a classic American steakhouse, and a staple within the Redmond neighborhood. Dedicated to serving the highest quality steak available, Prime Steakhouse delivers an exceptional dining experience with meals fit for any pallet. Prime Steakhouse operates a regular lunch, dinner, and happy hour menu, with brunch options on the weekend.
PROPERTY OVERVIEW
PROPERTY ADDRESS
16330 Cleveland Street, Redmond, WA 98052
PARCEL NUMBER: 7198800086
ZONING: OT
CONSTRUCTION: Masonry
YEAR BUILD: 1969
LOT SIZE: 16,058 SF
TYPE: Restaurant
BUILDING SQUARE FOOTAGE: 3,700 SF
OCCUPANCY: 2014
TENANT:Prime Steakhouse
PROPERTY ADDRESS
16390 Cleveland Street, Redmond, WA 98052
PARCEL NUMBER: 7198800085
ZONING: OT
CONSTRUCTION: Masonry
YEAR BUILD: 1956
LOT SIZE: 3,140 SF
TYPE: Retail
BUILDING SQUARE FOOTAGE: 3,219 SF
OCCUPANCY: 2017
TENANT: Orgins Cannabis
LEASE OVERVIEW | REDMOND
PRIME STEAKHOUSE
Prime Steakhouse originally signed a ten year lease in 2014, with a lease expiration on March 31, 2024. They have one option to renew for an additional 5 years at a 3% increase over the previous base rent.
ORIGINS CANNABIS
Upon close of escrow of the sale transaction, Origins Cannabis will sign and corporately guaranty a 10 year NNN lease agreement with 2 five-year options. At lease commencement, the
LOCATION HIGHLIGHTS | REDMOND
LOCATION HIGHLIGHTS
Situated in the heart of Downtown Redmond immediately adjacent to numerous new developments including Redmond Town Center, Redmond Square, among many other new developments. Existing commercial product houses a surplus of local amenities with expansive list of restaurants, professional services, and retail businesses.
Located near various transit options providing unparalleled accessibility to major transportation routes, including regional bus routes, Interstate 405, Interstate 90, State Route 520, and the forthcoming Sound Transit Station connecting Redmond, Bellevue, and the greater Seattle area, which is kitty corner to the site.
Proximity to major employers, tech giants, and research institutions, and some of the most innovative organizations in the technology, finance, and business industries like Facebook, Microsoft, Amazon, Google, and many others.
Within Old Town (OT) zoning district, offering strong long term redevelopment potential. Proximity to future light rail station provides additional incentive for transit oriented development. 2016 preliminary massing study can be made available
ZONING SUMMARY | OLD TOWN (OT)
The Old Town district is comprised of the original downtown and includes a number of historic structures and gathering places, including a central park. The Old Town district is established to be a center of pedestrian-oriented retail activity in the Downtown neighborhood. The regulations shaping development in this district provide for an urban village pattern and rhythm which encourages narrow ground floor storefronts, small blocks, narrow streets with curbside parking, mixed-use residential/office/service buildings, and pedestrian-scale architecture. The zoning regulations allow for a maximum building height of 6 stories with a 100 percent lot coverage. Please see Redmond zoning code for additional zoning regulations; a preliminary massing study can be made available upon request.
PROPERTY AERIAL
PROPERTY ADDRESS
4822 California Avenue SW, Seattle, WA 98116
PARCEL NUMBER: 7579201045
ZONING: NC2-75 (M)
CONSTRUCTION: Masonry
YEAR BUILD: 1928
LOT SIZE: 5,750 SF
TYPE: Single Tenant Retail
BUILDING SQUARE FOOTAGE: 3,050 SF
REMODELED: 2023
TENANT: Orgins Cannabis
LEASE OVERVIEW | WEST SEATTLE
Upon close of escrow of the sale transaction, Origins Cannabis will sign and corporately guaranty a 10 year NNN lease agreement with 2 five-year options. At lease commencement, the tenant shall pay $296,000 annually plus NNN, and there will be a 5% rental escalation in the 6th year, and for each of the option periods. Origins West Seattle is currently located at 4800 40th Ave SW, Seattle, WA 98116, and will relocate to this site upon completion of the renovations. The new retail location will have an updated fit and feel as the current West Seattle location, after undergoing a $300,000 renovation. Expected completion by October 2023.
LOCATION HIGHLIGHTS | WEST SEATTLE
LOCATION HIGHLIGHTS
Centrally located one block south of the West Seattle Junction at the intersection of California Ave SW & SW Alaska Street: the center of West Seattle. California Ave serves as a major throughfare between North Admiral, the Junction and Fauntleroy neighborhoods. The recently reopened and renovated West Seattle Bridge has drastically increased the accessibility of West Seattle and the site.
4822 California Ave will be approximately .25 mile away from the future SW Alaska Street light rail ST3 link station scheduled to be completed in 2030. This will provide full rail service to cities like Seattle, Everett, Bellevue, Redmond, Mercer Island, Federal Way, and Tacoma.
4822 California Ave is in the center mix of numerous restaurants, cafes, small businesses, and other supportive neighborhood amenities that service the West Seattle neighborhood.
ZONING SUMMARY | NC2 -75 (M)
A moderately-sized pedestrian-oriented shopping areas that provides a full range of retail sales and services to the surrounding neighborhood, such as medium-sized grocery stores, drug stores, coffee shops, customer service offices, or medical/dental facilities. Building types are single-purpose commercial structures, multi-story mixed use and residential structures. Non-residential uses typically occupy the street front. 25,000 square feet is the maximum size for some commercial uses with a height limit of 75 feet.
PROPERTY PHOTOS
PROPERTY AERIAL
LEE & ASSOCIATES PACIFIC NORTHWEST
Lee & Associates offers an array of real estate services tailored to meet the needs of the company’s clients, including commercial real estate brokerage, integrated services, and construction services. Established in 1979, Lee & Associates is now an international firm with offices throughout the United States and Canada. Our professionals regularly collaborate to make sure they are providing their clients with the most advanced, up-to-date market technology and information. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.
For more information on the Redmond Office Center Offering please contact Troy Gessel.
Troy Gessel
Principal
C: 425.301.4422