Manufacturing Facility with Cold
For Sale
Contact for pricing
2890 Lee Road, Prosser, WA 99350
Wine-production property combines climate-controlled storage, hospitality areas, production infrastructure, and included processing equipment.
Property Size39,980 SF
Price / SF$95.05
Days on Market102
Property Features for 2890 Lee Road
General Information
Standard status
Active
Size
39,980 SF
Property subtype
Retail, Industrial
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Dock-High Doors
1
Three-Phase Power
Yes
Cold Storage
Yes
Cold Storage Area
20,000 SF
Building Details
Year Built
1999
Buildings
3
Construction
steel frame
Listing Agency:
Kidder Mathews Seattle
(206) 296-9628
Listed By:
Mike King · License #73746
Source:
Crexi
Added: May 22
Changed: Aug 30
Last Checked: Aug 30 at 1:35PM
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 Kidder Mathews Seattle
Investment Insights
Based on property information with market context.
This manufacturing property includes three steel-frame buildings with insulated walls, high ceilings, and systems configured for wine production, climate-controlled fermentation, and barrel aging. The original building, constructed in 1999, contains a tasting room, retail area, event space, executive offices, mezzanine, and production area. Additions completed in 2008 include a climate-controlled cold barrel storage building and a shop.
Production infrastructure includes a dock-high loading dock with dock leveler, covered crush pad, floor drains, glycol chiller, heat exchange systems, and three-phase electrical service. The hospitality wing adds customer restrooms, a commercial prep kitchen, retail merchandising space, outdoor patio, and event lawn. Included equipment ranges from stainless-steel fermentation tanks and a bottling line to barrel racks, vacuum pumps, a KLR wine press, ozone sanitation equipment, and cellar tools.
The property is located on Lee Road in Prosser, near Mercer Wine Estates, Alexandria Nicole Cellars, and the Prosser Wine & Food Park. Interstate 82 is less than two miles away, with distribution access toward the Tri-Cities metropolitan area, Yakima, Seattle, and Portland.
Production infrastructure includes a dock-high loading dock with dock leveler, covered crush pad, floor drains, glycol chiller, heat exchange systems, and three-phase electrical service. The hospitality wing adds customer restrooms, a commercial prep kitchen, retail merchandising space, outdoor patio, and event lawn. Included equipment ranges from stainless-steel fermentation tanks and a bottling line to barrel racks, vacuum pumps, a KLR wine press, ozone sanitation equipment, and cellar tools.
The property is located on Lee Road in Prosser, near Mercer Wine Estates, Alexandria Nicole Cellars, and the Prosser Wine & Food Park. Interstate 82 is less than two miles away, with distribution access toward the Tri-Cities metropolitan area, Yakima, Seattle, and Portland.
Key Highlights
- Three‑building manufacturing property with wine‑production and climate‑controlled storage improvements
- 1999 original structure with tasting room, retail area, event space, offices, mezzanine, and production area
- 2008 additions include a climate‑controlled cold barrel storage building and a shop
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
$316,958
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
8.34%
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%
$6,339,160
$6.3M
Cap Rate 7%
$4,527,971
$4.5M
Cap Rate 9%
$3,521,756
$3.5M
Market Conditions
NOI Build-Up for 39,980 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
$527.7K $13.20/SF
− Vacancy
−$40.1K −$1.00/SF
EGI
$487.6K $12.20/SF
− OpEx
−$170.7K −$4.27/SF
NOI
$317.0K $7.93/SF
Area
Benton County, WA
Vacancy
7.60%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
35.00%
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%
$6,339,160
Cap Rate 7%
$4,527,971
Cap Rate 9%
$3,521,756
Alternative Uses
Best Use
Flex RnD
$4.53M
$3.96M – $5.28M
NOI $316,958 @ 7.0% cap · market cap 8.34%
Second Best
Warehouse
$3.57M
$3.12M – $4.17M
NOI $249,999 @ 7.0% cap · market cap 6.58%
Theoretical Best
Office A
$11.09M
$9.70M – $12.94M
NOI $776,229 @ 7.0% cap · market cap 20.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Dock-high doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
26
Businesses Nearby
Explore this area
Business Placement
Demographics for 99350, WA
13,240
Population
4,954
Households
2.7
Avg Household Size
36
Median Age
20%
College-Educated
79%
High-School Grad
600.1 sq mi
ZIP Area
22
Density / Sq Mi
$74,393
Median Household Income
$35,976
Median Earnings
$899
Median Rent
$289,100
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Wine-production property combines climate-controlled storage, hospitality areas, production infrastructure, and included processing equipment.
Where is this manufacturing property located?
The property is located at 2890 Lee Road Prosser, WA.
What is the asking price?
The asking price for this property is $3,800,000.
What are key features of this property?
This property features: Three‑building manufacturing property with wine‑production and climate‑controlled storage improvements; 1999 original structure with tasting room, retail area, event space, offices, mezzanine, and production area; 2008 additions include a climate‑controlled cold barrel storage building and a shop
