Downtown Storefront with Redevelopment
For Sale
$1,650,000
Pending
1232 N State St, Bellingham, WA 98225
Storefront in Downtown District with redevelopment potential and outdoor courtyard.
Property Size5,500 SF
Days on Market102
Property Features for 1232 N State St
General Information
Standard status
Pending
Size
5,500 SF
Listing Agency:
Saratoga Commercial R.E.
(360) 676-4866
Listed By:
Amia Froese · License #27664
(360) 676-4866
Source:
Exprealty
Added: May 14
Changed: Aug 23
Last Checked: Aug 23 at 8:49AM
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 Saratoga Commercial R.E.
Investment Insights
Based on property information with market context.
This property features a welcoming storefront presence and an inviting outdoor courtyard patio. Located within the Downtown District’s Urban Village and Opportunity Zone, the property offers future upside. The property size is 5500 square feet. Zoning advantages include no maximum density, no maximum height restriction, and no minimum setbacks. The property is suitable for investors seeking dependable in-place income with redevelopment potential.
Key Highlights
- Exceptional future upside due to location within Downtown District's Urban Village and Opportunity Zone.
- Zoning advantages: no maximum density, no maximum height restriction, and no minimum setbacks.
- Dependable in‑place income potential for investors.
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
$65,627
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
3.98%
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%
$1,312,540
$1.3M
Cap Rate 7%
$937,529
$937.5K
Cap Rate 9%
$729,189
$729.2K
Market Conditions
NOI Build-Up for 5,500 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
$99.0K $18.00/SF
− Vacancy
−$5.2K −$0.95/SF
EGI
$93.8K $17.05/SF
− OpEx
−$28.1K −$5.11/SF
NOI
$65.6K $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%
$1,312,540
Cap Rate 7%
$937,529
Cap Rate 9%
$729,189
Alternative Uses
Best Use
Retail
$937.5K
$820.3K – $1.09M
NOI $65,627 @ 7.0% cap · market cap 3.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.30M
$1.14M – $1.51M
NOI $90,824 @ 7.0% cap · market cap 5.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,288
Businesses Nearby
64k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 64%
Groceries 21%
Dining 6%
Apparel 5%
Grocery Outlet Bargain Market
Groceries
13,469 visits/mo
0.4 miles
Exxon
Shops & Services
9,668 visits/mo
0.3 miles
U.S. Bank
Shops & Services
6,011 visits/mo
0.3 miles
Chase Bank
Shops & Services
4,015 visits/mo
0.2 miles
Peoples Bank
Shops & Services
3,812 visits/mo
0.3 miles
Demographics for 98225, WA
49,078
Population
24,202
Households
2
Avg Household Size
31
Median Age
48%
College-Educated
96%
High-School Grad
12.6 sq mi
ZIP Area
3,895
Density / Sq Mi
$62,220
Median Household Income
$33,122
Median Earnings
$1,430
Median Rent
$588,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Storefront in Downtown District with redevelopment potential and outdoor courtyard.
Where is this storefront property located?
The property is located at 1232 N State St Bellingham, WA.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Exceptional future upside due to location within Downtown District's Urban Village and Opportunity Zone.; Zoning advantages: no maximum density, no maximum height restriction, and no minimum setbacks.; Dependable in‑place income potential for investors.
