Spokane University District Investment
For Sale
$6,350,000
115 E Pacific Ave & 112 E 1st Ave, Spokane, WA 99202
City block with redevelopment potential in Spokane's University District.
Property Size42,098 SF
Price / SF$150.84
Days on Market264
Property Features for 115 E Pacific Ave & 112 E 1st Ave
General Information
Standard status
Active
Size
42,098 SF
Class
B
Property subtype
Office
Building Details
Building Size
42,098 SF
Year Built
1972
Listing Agency:
SVN Cornerstone LLC
(509) 496-6922
Listed By:
Jordan Lester, CCIM, MBA · License #WA #21008495
(509) 496-6922
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 11 at 6:03AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of SVN Cornerstone LLC
Investment Insights
Based on property information with market context.
This NNN leased investment property presents a rare opportunity to own an entire city block within Spokane's rapidly expanding University District. The site offers potential for a 2-acre redevelopment, benefiting from flexible GC-150 Zoning and a waived parking requirement. Its location within an opportunity zone, coupled with close proximity to Downtown Spokane and the University District, enhances its appeal. The property consists of two buildings: 115 E Pacific Ave, comprising 26,612 square feet, and 112 E 1st Ave, offering 15,486 square feet. Currently, the buildings are occupied by Healing Room Ministries and On Fire Ministries. The combined leases for both buildings generate a total of $29,659.51 per month on an NNN basis. The property includes 104 striped parking spaces.
Key Highlights
- Entire city block in Spokane's fast‑growing University District.
- NNN leased investment property with combined monthly income of $29,659.51.
- Potential 2‑acre redevelopment site with flexible GC‑150 Zoning and waived parking requirement.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$436,813
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.88%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$8,736,260
$8.7M
Cap Rate 7%
$6,240,186
$6.2M
Cap Rate 9%
$4,853,478
$4.9M
Market Conditions
NOI Build-Up for 42,098 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$682.0K $16.20/SF
− Vacancy
−$58.0K −$1.38/SF
EGI
$624.0K $14.82/SF
− OpEx
−$187.2K −$4.45/SF
NOI
$436.8K $10.38/SF
Area
Spokane, WA
Vacancy
8.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$8,736,260
Cap Rate 7%
$6,240,186
Cap Rate 9%
$4,853,478
Alternative Uses
Best Use
Office B
$8.61M
$7.54M – $10.05M
NOI $602,801 @ 7.0% cap · market cap 9.49%
Second Best
Retail
$6.24M
$5.46M – $7.28M
NOI $436,813 @ 7.0% cap · market cap 6.88%
Theoretical Best
Office A
$10.86M
$9.50M – $12.67M
NOI $760,290 @ 7.0% cap · market cap 11.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,720
Businesses Nearby
Explore this area
Business Placement
Demographics for 99202, WA
21,969
Population
8,296
Households
2.6
Avg Household Size
31
Median Age
33%
College-Educated
92%
High-School Grad
5.9 sq mi
ZIP Area
3,724
Density / Sq Mi
$61,323
Median Household Income
$31,892
Median Earnings
$1,070
Median Rent
$268,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - City block with redevelopment potential in Spokane's University District.
Where is this office building located?
The property is located at 115 E Pacific Ave & 112 E 1st Ave Spokane, WA.
What is the asking price?
The asking price for this property is $6,350,000.
What are key features of this property?
This property features: Entire city block in Spokane's fast‑growing University District.; NNN leased investment property with combined monthly income of $29,659.51.; Potential 2‑acre redevelopment site with flexible GC‑150 Zoning and waived parking requirement.
