Home Depot Retail Warehouse Trades Hands

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SPOKANE, WA-The Home Depot retail warehouse property here has changed hands for $20.8 million. The new owner is Cole Capital Partners, a Phoenix-based investment management firm focused on single-tenant, freestanding properties. The list price was $22 million.The 9.9-acre property is located at 9916 N. Newport Highway and is part of a larger shopping center. The Home Depot building is 105,l60 sf, but includes a 24,138-sf enclosed outdoor shopping area. It was built in 1998.The property is leased by Home Depot through November 2019. The annual net operating income from the property is slightly more than $1.3 million, according to a marketing document obtained by GlobeSt.com. The rent bumps up 10% every five years. The seller was a private local partnership. The sale was brokered by Mike Garrido, president of Trident Realty Advisors, a Los Angeles-based brokerage firm specializing in single-tenant properties leased to investment-grade tenants. Garrido declined comment on the specifics of the transaction, however other sources tell GlobeSt.com the capitalization rate on the investment is 6.3%. The source adds that cap rates are low enough right now for these types of assets that the seller was able to pay off the loan on the property, including a $2-million pre-payment penalty, and still make a profit.