Walgreens NNN Investment
For Sale
Contact for pricing
28817 Military Rd S, Federal Way, WA 98003
NNN Walgreens in Federal Way with strong traffic and demographics.
Property Size14,238 SF
Price / SF$300.96
Days on Market174
Property Features for 28817 Military Rd S
General Information
Standard status
Active
Size
14,238 SF
Property subtype
Retail
Zoning
NB - Neighborhood Business
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$375,000
Building Details
Year Built
2004
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Seattle
Listed By:
Trevor Lane · License #24007779
Source:
Crexi
Added: Feb 18
Changed: Aug 10
Last Checked: Aug 10 at 12:18PM
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 Marcus & Millichap - Seattle
Investment Insights
Based on property information with market context.
This property presents an investment opportunity with a Walgreens location in Federal Way, WA, within the Seattle-Tacoma MSA. The property has over 5 years remaining on an absolute NNN lease, with six, 5-year renewal options. The lease is corporately guaranteed by Walgreens Boots Alliance, Inc. Walgreens has occupied this location since 2004, benefiting from a lack of pharmacy competition within 2 miles. The property is shadow anchored by a top 10% ranked Safeway grocery store with over 910,000 annual visits and is adjacent to Valley Harvest International Market, which has 500,000 annual visits, contributing to traffic flow. Situated at the signalized intersection of Military Road S and S 288th Street, the location benefits from over 33,000 vehicles per day, with visibility and access. The area has approximately 230,000 residents within five miles and average household incomes exceeding $100,000. The property size is 14238 square feet. The rent increases 13% in 2031 in the next lease renewal option.
Key Highlights
- Absolute NNN lease with 5+ years remaining, corporately guaranteed by Walgreens Boots Alliance, Inc.
- Located in a high‑traffic area (33,000+ vehicles per day) at a signalized intersection with excellent visibility and access.
- Shadow‑anchored by a top 10% ranked Safeway and adjacent to Valley Harvest International Market, driving strong traffic.
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
$304,337
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
7.10%
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%
$6,086,740
$6.1M
Cap Rate 7%
$4,347,671
$4.3M
Cap Rate 9%
$3,381,522
$3.4M
Market Conditions
NOI Build-Up for 14,238 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
$427.1K $30.00/SF
− Vacancy
−$21.4K −$1.50/SF
EGI
$405.8K $28.50/SF
− OpEx
−$101.4K −$7.13/SF
NOI
$304.3K $21.38/SF
Area
King County, WA
Vacancy
5.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
25.00%
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%
$6,086,740
Cap Rate 7%
$4,347,671
Cap Rate 9%
$3,381,522
Alternative Uses
Best Use
Specialty Retail
$4.35M
$3.80M – $5.07M
NOI $304,337 @ 7.0% cap · market cap 7.10%
Second Best
Retail
$3.64M
$3.18M – $4.24M
NOI $254,698 @ 7.0% cap · market cap 5.94%
Theoretical Best
Office A
$5.70M
$4.99M – $6.65M
NOI $399,188 @ 7.0% cap · market cap 9.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
327
Businesses Nearby
48k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 67%
Shops & Services 27%
Dining 5%
Safeway
Groceries
32,654 visits/mo
0.1 miles
7-Eleven
Shops & Services
13,118 visits/mo
0.1 miles
SUBWAY
Dining
1,460 visits/mo
0.1 miles
Pizza Hut
Dining
1,154 visits/mo
0.1 miles
Demographics for 98003, WA
51,751
Population
20,380
Households
2.5
Avg Household Size
37
Median Age
28%
College-Educated
88%
High-School Grad
11.5 sq mi
ZIP Area
4,500
Density / Sq Mi
$70,800
Median Household Income
$39,497
Median Earnings
$1,650
Median Rent
$428,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Walgreens Pharmacy — 28817 Military Rd S, Federal Way, WA 98003
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Frequently Asked Questions
What type of property is this?
Drug store - NNN Walgreens in Federal Way with strong traffic and demographics.
Where is this drug store located?
The property is located at 28817 Military Rd S Federal Way, WA.
What is the asking price?
The asking price for this property is $4,285,000.
What are key features of this property?
This property features: Absolute NNN lease with 5+ years remaining, corporately guaranteed by Walgreens Boots Alliance, Inc.; Located in a **high‑traffic area (33,000+ vehicles per day)** at a signalized intersection with excellent visibility and access.; Shadow‑anchored by a top 10% ranked Safeway and adjacent to Valley Harvest International Market, driving strong traffic.
