Woods Coffee

Property Overview

Woods Coffee New Construction is a 671 SF drive-thru retail building completed in 2022 and located at 10318 Evergreen Way in Everett, Washington. The property sits at a signalized intersection on Evergreen Way/Pacific Highway and is part of a new development that also includes a Sonic Drive-In and Glint Car Wash on adjacent tax parcels.

Challenge

Our team was engaged to sell a newly constructed, single-tenant drive-thru Woods Coffee on behalf of the original developer. The assignment required finding a buyer who could recognize the value of a small-format, 671 SF building at a price point of $1,730,000 — or $2,578 per square foot — supported by the strength of the underlying lease structure and the quality of the surrounding development. The transaction also needed to accommodate a 1031 exchange on the buyer's side, adding a layer of timing and coordination to the process.

Action

Our team's involvement began before the building was complete. We provided site selection services to the original developer, giving us deep familiarity with the asset and its positioning within the new development. When the property came to market, we presented it as a stabilized NNN investment anchored by a regional drive-thru tenant with an established presence across Washington State.

Key investment attributes we communicated to prospective buyers:

• Woods Coffee signed a 10-year initial lease term with four 5-year options on a NNN basis
• Glint Car Wash, on an adjacent parcel included in the offering, signed a 20-year NNN lease with six 5-year options and leases seven parking spaces for vacuum stalls, providing additional income
• Traffic counts on Evergreen Way/Pacific Highway exceed 36,000 vehicles per day
• Washington State has no personal income tax
• The building was completed in October 2022, requiring minimal near-term maintenance

We identified a local buyer completing a 1031 exchange and guided both parties through the requirements of that process to a successful close.

Result

• Sale price of $1,730,000 ($2,578 per SF) for a 671 SF new construction retail building
• Buyer completed a 1031 exchange, meeting their reinvestment requirements
• Long-term NNN lease structure in place at close, providing the buyer with passive, low-management income
• Our team's prior site selection work for the developer created continuity from project inception through disposition