Industrial Distribution Center with Rail
For Sale
$6,100,000
503 W Prospect Ave, Moxee, WA 98936
Comm/Industrial, Moxee, WA
Property Size66,476 SF
Lot Size10.00 Acres
Price / SF$91.76
Days on Market253
Property Features for 503 W Prospect Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
M1 - Light Indus
Directions
From Yakima, take I-82 East toward Moxee. Take Exit 44 for WA-24 / Moxee. Turn right onto WA-24 and continue into Moxee. Turn left onto Rivard Road, then turn right onto W Prospect Street. Continue west on W Prospect to 503 W Prospect. Property will be on the right.
Subdivision
11 - Moxee Area
Standard status
Active
APN
191201-22003
Size
66,476 SF
Lot size
10.00 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
43857
Utilities
Heating system
Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1986
Flooring type
Concrete
Building materials
Frame
Roof type
Built-Up
Listing Agency:
Keller Williams Yakima Valley · Keller Williams Realty
(509) 966-1020
Listed By:
Russ Roberts, · License #26317
(509) 949-2192
Added: Jan 14
Changed: Sep 5
Last Checked: Sep 24 at 10:06AM
MLS# 26-217
Copyright © 2026 Yakima Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 66,476-square-foot light industrial distribution facility occupies a 10-acre parcel extending to Postma Road. Built in 1986, the property includes approximately 4,000 square feet of finished office space, concrete flooring, forced-air heating, central air, public water, and a built-up roof. The building is currently 45% leased to Kustom US under a NNN lease.
Operational features include an east-side rail spur, three 14-foot roll-up doors, and drive-through access within the building. The west side contains five separate rooms that can be reconfigured into a larger open area, along with two additional 2,500-square-foot rooms. Clearances reach a 25-foot peak with 22-foot eaves. The facility is served by 4,800 amps of 480V, 3-phase power, an 8-foot water line, an upgraded HVAC system, and a sprinkler system. Parking is provided along the front and west sides.
Operational features include an east-side rail spur, three 14-foot roll-up doors, and drive-through access within the building. The west side contains five separate rooms that can be reconfigured into a larger open area, along with two additional 2,500-square-foot rooms. Clearances reach a 25-foot peak with 22-foot eaves. The facility is served by 4,800 amps of 480V, 3-phase power, an 8-foot water line, an upgraded HVAC system, and a sprinkler system. Parking is provided along the front and west sides.
Key Highlights
- 66,476‑square‑foot light industrial facility on 10 acres
- 45% leased to Kustom US under a NNN lease
- East‑side rail spur supports freight movement
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
$526,849
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
8.64%
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%
$10,536,980
$10.5M
Cap Rate 7%
$7,526,414
$7.5M
Cap Rate 9%
$5,853,878
$5.9M
Market Conditions
NOI Build-Up for 66,476 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
$813.7K $12.24/SF
− Vacancy
−$61.0K −$0.92/SF
EGI
$752.6K $11.32/SF
− OpEx
−$225.8K −$3.40/SF
NOI
$526.8K $7.93/SF
Area
Yakima County, WA
Vacancy
7.50%
Lease Rate
$12.24 /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%
$10,536,980
Cap Rate 7%
$7,526,414
Cap Rate 9%
$5,853,878
Alternative Uses
Best Use
Warehouse
$9.14M
$8.00M – $10.66M
NOI $639,745 @ 7.0% cap · market cap 10.49%
Second Best
Industrial
$7.53M
$6.59M – $8.78M
NOI $526,849 @ 7.0% cap · market cap 8.64%
Theoretical Best
Office A
$13.50M
$11.81M – $15.75M
NOI $944,980 @ 7.0% cap · market cap 15.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
45%
Occupancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
76
Businesses Nearby
Explore this area
Business Placement
Demographics for 98936, WA
6,846
Population
2,782
Households
2.5
Avg Household Size
34
Median Age
19%
College-Educated
86%
High-School Grad
138.6 sq mi
ZIP Area
49
Density / Sq Mi
$95,625
Median Household Income
$45,544
Median Earnings
$1,288
Median Rent
$325,400
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?
Distribution center - Light industrial facility with rail access, substantial power capacity, office improvements, and drive-through loading functionality.
Where is this distribution center located?
The property is located at 503 W Prospect Ave Moxee, WA.
What is the asking price?
The asking price for this property is $6,100,000.
What are key features of this property?
This property features: 66,476‑square‑foot light industrial facility on 10 acres; 45% leased to Kustom US under a NNN lease; East‑side rail spur supports freight movement
