Historic Fairhaven Retail Condos For
For Sale
Contact for pricing
1318 McKenzie Ave, Bellingham, WA
Street-level commercial/retail condos in historic downtown Fairhaven.
Property Size19,820 SF
Lot Size0.12 Acres
Price / SF$173.21
Days on Market544
Property Features for 1318 McKenzie Ave
General Information
Standard status
Active
Size
19,820 SF
Lot size
0.12 Acres
Property subtype
RETAIL
Listing Agency:
John L. Scott - Bellingham
(360) 961-2671
Listed By:
Patrick Starr, CCIM
(360) 961-2671
Source:
Moodyscre
Added: Mar 6, 2025
Changed: Aug 8
Last Checked: Aug 30 at 10:32PM
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 John L. Scott - Bellingham
Investment Insights
Based on property information with market context.
This is an opportunity to own a piece of historic downtown Fairhaven, consisting of 8 street-level commercial/retail condos split between the Waldron & Young Buildings, encompassing Finnegan's Alley. The properties are located at multiple addresses. All leases include escalations and are NNN. The cap rate is 6.75%. The sale also includes some underground parking rights. There is potential to assume the underlying mortgage at 4.125% if desired. The total property size is 19820 square feet.
Key Highlights
- Prime historic downtown Fairhaven location.
- Excellent 6.75% cap rate.
- Multiple street‑level commercial/retail condos.
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
$236,496
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
6.89%
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%
$4,729,920
$4.7M
Cap Rate 7%
$3,378,514
$3.4M
Cap Rate 9%
$2,627,733
$2.6M
Market Conditions
NOI Build-Up for 19,820 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
$356.8K $18.00/SF
− Vacancy
−$18.9K −$0.95/SF
EGI
$337.9K $17.05/SF
− OpEx
−$101.4K −$5.11/SF
NOI
$236.5K $11.93/SF
Area
Whatcom County, WA
Vacancy
5.30%
Lease Rate
$18.00 /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%
$4,729,920
Cap Rate 7%
$3,378,514
Cap Rate 9%
$2,627,733
Alternative Uses
Best Use
Retail
$3.38M
$2.96M – $3.94M
NOI $236,496 @ 7.0% cap · market cap 6.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.68M
$4.09M – $5.45M
NOI $327,298 @ 7.0% cap · market cap 9.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,114
Businesses Nearby
22k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 87%
Dining 13%
Haggen
Groceries
19,457 visits/mo
0.1 miles
El Agave
Dining
2,931 visits/mo
0.2 miles
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Street-level commercial/retail condos in historic downtown Fairhaven.
Where is this retail space located?
The property is located at 1318 McKenzie Ave Bellingham, WA.
What is the asking price?
The asking price for this property is $3,433,015.
What are key features of this property?
This property features: Prime historic downtown Fairhaven location.; Excellent 6.75% cap rate.; Multiple street‑level commercial/retail condos.
