NNN Shopping
New
For Sale
$7,945,000
13215 SE 240th St, Kent, WA 98042
Fully leased neighborhood retail center with diversified occupancy and contractual annual rent increases.
Property Size24,621 SF
Price / SF$322.69
Days on Market2
Property Features for 13215 SE 240th St
General Information
Standard status
Active
Size
24,621 SF
Property subtype
Shopping Community
Occupancy
100%
Site & Location
Corner Location
Yes
Traffic Count
43,200 vehicles/day
Amenities
100% Occupied Retail Center w/ Diverse Tenant Mix
NNN Leases w/ Minimal Landlord Responsibilities
Attractive Annual Rent Increases
High-Traffic Signalized Hard Corner (43,200+ VPD)
Strategic Neighborhood Location
Strong Historical Occupancy
Dense, Affluent Demographics
Income Tax-Free State
Building Details
Building Size
24,621 SF
Year Built
1985
Tenancy
Multi
Listed By:
Clay Brown · License #License(s): WA: 123258, ID: SP56979
(206) 826-5787
Source:
Marcusmillichap
Added: Sep 12
Last Checked: Sep 13 at 4:16AM
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 Clay Brown
Investment Insights
Based on property information with market context.
Meridian Place is a fully occupied retail center at 13215 SE 240th St in Kent, Washington. The property includes 15 tenants across retail, medical, professional services, and education, with NNN lease structures that provide management fee reimbursement. Existing agreements include annual rent increases ranging from 2.50% to 3.50%. More than 54% of the GLA has remained with tenants for over five years, while 40%+ has been occupied by tenants for more than eight years.
The center occupies the signalized corner of SE 240th St and 132nd Ave SE, where traffic volume exceeds 43,200 VPD. A residential area containing 3,500+ homes lies within one mile, and the property serves a five-mile population of 227,000+ residents. Its tenant mix and neighborhood setting support a broad range of local-serving commercial activity.
The center occupies the signalized corner of SE 240th St and 132nd Ave SE, where traffic volume exceeds 43,200 VPD. A residential area containing 3,500+ homes lies within one mile, and the property serves a five-mile population of 227,000+ residents. Its tenant mix and neighborhood setting support a broad range of local-serving commercial activity.
Key Highlights
- 100% occupied NNN retail center with 15 tenants
- Annual rent increases of 2.50%–3.50% across leases
- 54%+ of GLA occupied by tenants for more than five years
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
$361,443
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
4.55%
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%
$7,228,860
$7.2M
Cap Rate 7%
$5,163,471
$5.2M
Cap Rate 9%
$4,016,033
$4.0M
Market Conditions
NOI Build-Up for 24,621 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
$540.7K $21.96/SF
− Vacancy
−$24.3K −$0.99/SF
EGI
$516.3K $20.97/SF
− OpEx
−$154.9K −$6.29/SF
NOI
$361.4K $14.68/SF
Area
Kent, WA
Vacancy
4.50%
Lease Rate
$21.96 /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%
$7,228,860
Cap Rate 7%
$5,163,471
Cap Rate 9%
$4,016,033
Alternative Uses
Best Use
Retail
$5.16M
$4.52M – $6.02M
NOI $361,443 @ 7.0% cap · market cap 4.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.23M
$8.07M – $10.76M
NOI $645,868 @ 7.0% cap · market cap 8.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
43,200 VPD
Traffic count
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
248
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98042, WA
49,031
Population
17,365
Households
2.8
Avg Household Size
39
Median Age
34%
College-Educated
93%
High-School Grad
27.8 sq mi
ZIP Area
1,764
Density / Sq Mi
$125,554
Median Household Income
$59,882
Median Earnings
$2,121
Median Rent
$613,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
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Similar Off Market Nearby
- Meridian place — 132nd Ave SE, Kent, WA 98042
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Frequently Asked Questions
What type of property is this?
Shopping center - Fully leased neighborhood retail center with diversified occupancy and contractual annual rent increases.
Where is this shopping center located?
The property is located at 13215 SE 240th St Kent, WA.
What is the asking price?
The asking price for this property is $7,945,000.
What are key features of this property?
This property features: 100% occupied NNN retail center with 15 tenants; Annual rent increases of 2.50%–3.50% across leases; 54%+ of GLA occupied by tenants for more than five years
