Grocery Store NNN
For Sale
Contact for pricing
512 W 1st St, Wapato, WA 98951
Stabilized grocery store sold under a long-term NNN lease with multiple renewal options and an adjoining parcel.
Property Size22,400 SF
Lot Size2.68 Acres
Price / SF$113.47
Days on Market184
Property Features for 512 W 1st St
General Information
Standard status
Active
Size
22,400 SF
Class
C
Lot size
2.68 Acres
Property subtype
Retail
Zoning
B1/M1
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$203,330
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Cap Rate
7.9%
Building Details
Year Built
1976
Buildings
1
Tenancy
Single
Listing Agency:
Almon Commercial Real Estate
Listed By:
Nick Mayer · License #WA 90998
(509) 480-0733
Source:
Crexi
Added: Mar 12
Changed: Sep 10
Last Checked: Sep 11 at 4:47AM
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 Almon Commercial Real Estate
Investment Insights
Based on property information with market context.
This offering presents a stabilized retail investment anchored by a grocery store operating under a long-term NNN lease. The current lease term extends for ten years and includes four consecutive five-year renewal options. The tenant operates a regional grocery business and has a proven operating history at this location, and ownership/operation of seven additional grocery stores throughout Washington State. The package also includes an adjoining tax parcel in addition to the primary parcel.
The property is located at the prominent, high-traffic intersection of West 1st Street and U.S. Highway 97 in Wapato, Washington. Surrounding and nearby retail activity includes O’Reilly Auto Parts, McDonald’s, DaVita Dialysis, and the nearby Wolf Den retail hub.
The primary parcel is approximately 82,328 square feet and is zoned B-1 (Neighborhood Business District). The adjacent parcel is just under one acre at approximately 34,412 square feet and is zoned M-1 (Light Industrial), providing an added land component for potential future use, expansion, or ancillary development.
The property is located at the prominent, high-traffic intersection of West 1st Street and U.S. Highway 97 in Wapato, Washington. Surrounding and nearby retail activity includes O’Reilly Auto Parts, McDonald’s, DaVita Dialysis, and the nearby Wolf Den retail hub.
The primary parcel is approximately 82,328 square feet and is zoned B-1 (Neighborhood Business District). The adjacent parcel is just under one acre at approximately 34,412 square feet and is zoned M-1 (Light Industrial), providing an added land component for potential future use, expansion, or ancillary development.
Key Highlights
- Stabilized retail investment: grocery store operating under a long‑term NNN lease.
- Lease term is 10 years with four consecutive 5‑year renewal options for long‑term income durability.
- Offered at a 7.9% cap rate and described as a stabilized retail investment under NNN lease.
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
$227,897
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
8.97%
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%
$4,557,940
$4.6M
Cap Rate 7%
$3,255,671
$3.3M
Cap Rate 9%
$2,532,189
$2.5M
Market Conditions
NOI Build-Up for 22,400 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
$317.2K $14.16/SF
− Vacancy
−$13.3K −$0.59/SF
EGI
$303.9K $13.57/SF
− OpEx
−$76.0K −$3.39/SF
NOI
$227.9K $10.17/SF
Area
Yakima County, WA
Vacancy
4.20%
Lease Rate
$14.16 /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%
$4,557,940
Cap Rate 7%
$3,255,671
Cap Rate 9%
$2,532,189
Alternative Uses
Best Use
Specialty Retail
$3.26M
$2.85M – $3.80M
NOI $227,897 @ 7.0% cap · market cap 8.97%
Second Best
Retail
$3.24M
$2.84M – $3.79M
NOI $227,124 @ 7.0% cap · market cap 8.94%
Theoretical Best
Office A
$4.55M
$3.98M – $5.31M
NOI $318,424 @ 7.0% cap · market cap 12.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
263
Businesses Nearby
21k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar Tree
Shops & Services
9,404 visits/mo
0.3 miles
KeyBank
Shops & Services
4,285 visits/mo
0.1 miles
Advance Auto Parts
Shops & Services
2,941 visits/mo
0.2 miles
O'Reilly Auto Parts
Shops & Services
2,678 visits/mo
0.2 miles
Conoco
Shops & Services
1,407 visits/mo
0.1 miles
Demographics for 98951, WA
13,821
Population
3,672
Households
3.8
Avg Household Size
30
Median Age
11%
College-Educated
66%
High-School Grad
149.0 sq mi
ZIP Area
93
Density / Sq Mi
$63,083
Median Household Income
$33,141
Median Earnings
$871
Median Rent
$214,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
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Similar Off Market Nearby
- Washington Harvest — 107 Donald Rd, Wapato, WA 98951
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Stabilized grocery store sold under a long-term NNN lease with multiple renewal options and an adjoining parcel.
Where is this grocery and convenience store located?
The property is located at 512 W 1st St Wapato, WA.
What is the asking price?
The asking price for this property is $2,541,637.
What are key features of this property?
This property features: Stabilized retail investment: grocery store operating under a long‑term NNN lease.; Lease term is 10 years with four consecutive 5‑year renewal options for long‑term income durability.; Offered at a 7.9% cap rate and described as a stabilized retail investment under NNN lease.
