144 SW 20th St

Highlights:

• Investment-Grade Credit – Walgreens remains contractually obligated to pay $350,000 annually through May 2033, offering secure and predictable cash flow for the next 8 years.
• Absolute NNN Lease Structure – The lease is absolute triple net, with Walgreens responsible for all property expenses, including taxes, insurance, and maintenance—offering true passive income.
• Subleased to NAPA Auto Parts – NAPA occupies the entire premises under a sublease from Walgreens, providing additional operational stability and long-term tenancy potential.
• Attractive 10.6% CAP Rate – Priced at $3,300,000, the asset delivers strong yield for investors seeking reliable, long-term passive income with minimal management.
• Future Opportunity – Upon lease expiration in 2033, investors will have the option to negotiate directly with NAPA or re-tenant at market rates to optimize returns.
• Tight Retail Market – Pendleton features a low vacancy retail environment with limited commercial inventory, supporting long-term rent growth and tenant demand.
• Strategic Eastern Oregon Location – As the Umatilla County seat with ~17,100 residents and over 90,000 in the micropolitan area, Pendleton serves as a commercial hub for the region.
• Strong Local Economy & Tourism – The city hosts the nationally recognized Pendleton Round-Up, supports manufacturing, healthcare, and agriculture sectors, and draws consistent retail traffic from locals and tourists alike.

Description:

This freestanding retail asset in Pendleton, Oregon, is currently leased to Walgreens through May 2033 at an annual rent of $350,000, providing stable, long-term income backed by a national credit tenant. While Walgreens no longer occupies the space, they remain contractually obligated to fulfill all rent payments through the lease expiration date. The property is fully subleased to NAPA Auto Parts, a nationally recognized automotive retailer, which operates from the premises under an arrangement with Walgreens. Although the rental amount paid by NAPA to Walgreens is unknown, investors benefit from the security of Walgreens’ continued lease obligation for the next eight years.

This structure offers both immediate and future upside. At the current asking price of $3,300,000, the property generates an attractive in-place cap rate of 10.6%, with zero landlord responsibilities and income backed by an investment-grade tenant. Looking ahead, this asset presents a rare repositioning opportunity in 2033, where investors can either negotiate directly with NAPA Auto Parts to formalize a new lease or re-tenant the property at market rates. Positioned in a supply-constrained market with limited quality inventory, this asset blends reliable income today with value-add potential tomorrow, making it an ideal acquisition for both yield-focused and opportunistic investors.

Located in Pendleton, Oregon