All-Cash Buyer Nabs PetSmart-Occupied Asset

A single-tenant net-leased investment occupied by PetSmart in Yakima County recently sold in an off-market transaction. The sale price was $3.3 million, representing a 6.35 percent cap rate.

Hanley Investment Group Real Estate Advisors’ Jeff Lefko and Bill Asher in association with ParaSell Inc. represented the buyer. The seller was a private investor.

“We exclusively represented an all-cash exchange buyer based in Southern California and sourced an off-market opportunity by leveraging an existing relationship with a Florida-based investor,” said Lefko. “It is interesting how COVID has changed buyer preferences towards net lease properties. Pet stores have become a very attractive net lease investment due to the vast increase in the number of pets due to COVID. We anticipate more single-tenant PetSmart and Petco properties achieving record cap rates over the next year.”

Built in 2000, the 19,677-square-foot PetSmart building is situated on 1.56 acres at 1403 E. Washington Ave. in Union Gap. The single-tenant PetSmart has strong shadow-anchor support from nearby Cabela’s, Ross, Hobby Lobby, ULTA Beauty, Best Buy, TJ Maxx, Home Depot and Valley Mall, and is located off Interstate 82.