Acadia Healthcare

Property Overview

506 E 1st St in Aberdeen, Washington is a 3,903 SF single-tenant office building leased to Acadia Healthcare, operating locally as Grays Harbor Treatment Solutions. Built in 1975, the property offers a net-leased investment with a publicly traded tenant and annual rent escalations.

Challenge

Our team was engaged to sell a small single-tenant medical office building in Aberdeen, Washington on behalf of the seller. While the tenancy was strong, the property's size and location in a smaller coastal market limited the pool of conventional buyers. Finding the right investor required targeting those who understood the value of a publicly traded, nationally guaranteed lease in a community-based healthcare setting.

Action

We brought the property to market as a stabilized, single-tenant net-leased investment, emphasizing the credit quality of the Acadia Healthcare guarantee and the tenant's demonstrated commitment to the location through an early lease extension. Our marketing highlighted several factors that supported the investment thesis:

• Lease guaranteed by Acadia Healthcare, a publicly traded national medical company
• Tenant extended their lease early for an additional five years
• Tenant remodeled the interior of the building in 2018
• Annual rent bumps through 2029
• Tenant pays utilities directly, limiting landlord obligations to property taxes and insurance

We identified a buyer pursuing a 1031 exchange, for whom the stable, long-term lease structure and minimal management requirements aligned well with their acquisition criteria.

Result

• Sold the property for $725,000, or $186 per SF
• Secured a 1031 exchange buyer whose requirements matched the asset's passive income profile
• Delivered a clean transaction representing both the seller and the buyer's interests through close