Ballard Mixed-Use Development
For Sale
Contact for pricing
5422 Shilshole Ave NW & 5415 Ballard Ave NW, Seattle, WA 98107
Two neighboring properties in Seattle's Ballard neighborhood with value-add potential.
Property Size65,854 SF
Lot Size0.75 Acres
Price / SF$277.13
Days on Market1632
Property Features for 5422 Shilshole Ave NW & 5415 Ballard Ave NW
General Information
Standard status
Active
Size
65,854 SF
Lot size
0.75 Acres
Property subtype
Industrial
Zoning
IG2 U/65 /NC2P-65
Occupancy
100%
Lease Type
NNN
Building Details
Year Built
1941
Year Renovated
2020
Stories
2
Listing Agency:
Windermere Real Estate Seattle Wall Street
(206) 448-6400
Listed By:
Lauren Hendricks · License #WA
Source:
Crexi
Added: Mar 4, 2022
Changed: Aug 19
Last Checked: Aug 20 at 8:39PM
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 Windermere Real Estate Seattle Wall Street
Investment Insights
Based on property information with market context.
Located in Seattle's Ballard neighborhood, these properties offer significant value-add potential. Situated near Ballard's retail area with niche shops, restaurants, and bars, as well as Seattle's Ship Canal and the Ballard Locks, the location is highly desirable. The area is a well-established submarket with limited expansion possibilities, making it an attractive industrial market due to its proximity to the Port of Seattle and major employment and residential centers. Residential development is concentrated along Market Avenue NW. The area is transitioning from industrial to denser developments, including mixed-use projects with apartments above street-level retail. The offering includes two neighboring properties on separate tax parcels, totaling 32,550 square feet of land. A two-story, 65,854 square foot building sits on a 27,900 square foot parcel zoned IG2 U/65. Across the alley is a 4,650 square foot parking lot zoned NC2P-65 fronting Ballard Ave NW. Positioned in the center of Ballard’s commercial district, near the Salmon Bay waterfront and landmarks like the Ballard Locks and Golden Gardens Park, this offering suits various potential uses, including office, retail, residential, storage, and industrial.
Key Highlights
- Located in Ballard, a highly populated and rapidly developing Seattle neighborhood.
- Significant value‑add potential in a well‑established submarket.
- Two neighboring properties on separate tax parcels totaling 32,550 SF of land.
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
$1,156,111
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
6.33%
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%
$23,122,220
$23.1M
Cap Rate 7%
$16,515,871
$16.5M
Cap Rate 9%
$12,845,678
$12.8M
Market Conditions
NOI Build-Up for 65,854 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
$2.00M $30.36/SF
− Vacancy
−$457.8K −$6.95/SF
EGI
$1.54M $23.41/SF
− OpEx
−$385.4K −$5.85/SF
NOI
$1.16M $17.56/SF
Area
Seattle, WA
Vacancy
22.90%
Lease Rate
$30.36 /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%
$23,122,220
Cap Rate 7%
$16,515,871
Cap Rate 9%
$12,845,678
Alternative Uses
Best Use
Office B
$16.52M
$14.45M – $19.27M
NOI $1,156,111 @ 7.0% cap · market cap 6.33%
Second Best
Retail
$14.03M
$12.27M – $16.37M
NOI $981,938 @ 7.0% cap · market cap 5.38%
Theoretical Best
Office A
$19.81M
$17.34M – $23.11M
NOI $1,386,866 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,293
Businesses Nearby
Explore this area
Business Placement
Demographics for 98107, WA
28,557
Population
16,538
Households
1.7
Avg Household Size
35
Median Age
76%
College-Educated
99%
High-School Grad
2.2 sq mi
ZIP Area
12,980
Density / Sq Mi
$137,748
Median Household Income
$82,884
Median Earnings
$2,194
Median Rent
$924,900
Median Home Value
Market
Vacancy Rate% for Office in Seattle, WA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two neighboring properties in Seattle's Ballard neighborhood with value-add potential.
Where is this mixed-use property located?
The property is located at 5422 Shilshole Ave NW & 5415 Ballard Ave NW Seattle, WA.
What is the asking price?
The asking price for this property is $18,250,000.
What are key features of this property?
This property features: Located in Ballard, a highly populated and rapidly developing Seattle neighborhood.; Significant value‑add potential in a well‑established submarket.; Two neighboring properties on separate tax parcels totaling 32,550 SF of land.
