Cannon Beach, OR – [December 17, 2021] – Blue West Capital has completed the sale of a single-tenant United States Postal Service property located at 163 N Hemlock Street in Cannon Beach, OR for $865,000. The property sold for the lowest cap rate ever recorded for a USPS property outside of California, according to CoStar. The property generated numerous offers and ultimately sold for above list price. This is the 3rd USPS property sold by Blue West Capital in 2021.
The property is positioned along downtown main street in Cannon Beach within walking distance to the beach. Cannon Beach is one of the most popular beach towns on the Oregon coast with over 750,000 visitors annually.
The United States Postal Service has operated at this property since 1982 and recently exercised an early lease extension. The 1,620 square foot USPS property serves as a “main office” and is essential to the community as there is no direct mail service to homes in Cannon Beach. The United States Postal Service is an independent agency of the Executive Branch of the United States with an investment grade credit rating of AA+ (S&P). USPS is investing $40 billion over the next ten years in their infrastructure and people.
Brandon Gayeski, of Blue West Capital, represented the seller in the transaction. The seller was a private Colorado-based investor and the purchaser was an Oregon-based family office.
“There are limited low price point high-quality single-tenant opportunities available. This property offered a long-term lease, with extremely strong credit, and irreplaceable underlying real estate which resulted in this historic cap rate,” said Brandon Gayeski, Associate Director.