Fred Meyer-The Kroger Co. | New 20-YR Abs. NNN | Seattle MSA

Highlights:

• Newly constructed Fred Meyer Fuel Station situated on a large 1.85 Acre parcel
• 20-Year Absolute NNN Ground Lease featuring 10% increases every 5-years throughout lease term and option periods
• Corporately guaranteed by The Kroger Co. | Investment-grade credit | Kroger's approximately $147.6 billion in fiscal 2025 sales demonstrates the scale of the company backing the rental income.
• Situated adjacent to an existing Fred Meyer grocery anchored shopping center that attracts more than 1.9M annual visits (according to Placer.AI)
• Dense & Affluent Demographics | 107k population with an average household income of $133k within a 5-mile radius
• Three nearby residential developments representing 777 planned residences within 1-mile of subject property: Elk Plain Crossing – 450 residential units on 61 acres, Mountain Highway East Development – 243 Townhomes on 19.25 acres, Mountain Highway Townhomes – 84 Homes on 5.72 Acres
• Mountain Highway Frontage, Visibility & Access | Exposure to approximately 24,700 vehicles per day
• South Puget Sound's Military Employment Base | 54,000+ Active military servicemen with a combined 144,000+ population
• Distribution Hub | 16 million+ square feet of industrial space in the Spanaway / Frederickson markets including distribution hubs for Boeing, Toray, Ashley Furniture and Harbor Freight
• Port of Tacoma: Generates approximately $10.8 billion in annual business output

Description:

Washington Broker of Record: Greg Close, Pacific Asset Advisors, License No. 23604

Faris Lee Investments is pleased to present the opportunity to acquire a newly constructed Fred Meyer Fuel Center in Spanaway, Washington, with the Seattle – Tacoma – Bellevue MSA. The investment is secured by a 20-year absolute NNN ground lease with no landlord maintenance responsibilities, offering passive income backed by a corporate guaranty from The Kroger Co. (NYSE: KR).

The subject property features a sizable 1.85-acre parcel with two access points along Mountain Highway East, which carries approximately 24,200 vehicles per day. Located near the Fred Meyer-anchored Bethel Station shopping center, the fuel center benefits from an established grocery destination generating approximately 1.9 million annual visits. Fred Meyer's grocery and fuel rewards program encourages repeat customer visits, reinforcing the connection between the nearby store and the subject property.

The surrounding trade area is supported by more than 107,700 residents and average household income exceeding $133,000 within five miles. Three nearby residential developments represent 777 planned homes, providing additional growth potential for grocery and fuel demand. Proximity to Joint Base Lewis-McChord, Tacoma, and Frederickson's employment centers further supports the customer base. Offered at $2,600,000 and a 5.00% cap rate, the investment combines corporate credit, contractual rent growth, and strong real estate fundamentals in Washington's South Sound region.

Newly constructed Fred Meyer fuel center along Mountain Highway East in the Seattle–Tacoma–Bellevue MSA, near Bethel Station shopping center and major residential growth.

---

Report Listing This listing was syndicated through: