Grove Plaza
Comprehensive Investment Opportunity Analysis
NAPA Auto Parts Building
104 S Pacific Hwy, Cottage Grove, OR 97424
Property Overview
Current Financial Performance
Detailed financial overview with current tenancy, including Bochetto Day Spa.
Rent Roll Details
| Tenant | RBA (SF) | Lease Expiration | Monthly Rent | Annual Rent | Insurance | Water | Tax | Monthly Total |
|---|---|---|---|---|---|---|---|---|
NAPA Auto Parts
Lease Options & TermsTwo (2) five-year renewal options, NNN lease. Lump sum property tax payment: $5,558.69 |
6,924 | 08/2029 | $4,272 | $51,264 | $140.00 | $240.00 | $5,558.69 | $4,652.00 |
Bochetto Day Spa
Lease Options & Terms12-month renewal option, NNN lease. Property tax: $85.28/month ($1,023.36/year) |
2,800 | 08/2025 | $1,300 | $15,600 | $51.50 | $75.00 | $1,023.36 | $1,511.78 |
| Vacant Space | 4,200 | — | — | — | — | — | — |
Investment Scenarios
Detailed financial projections illustrating performance under different tenancy scenarios, highlighting the value-add opportunity.
Current Performance
Stable income with NAPA + Day Spa
Day Spa Vacancy
NAPA only + 7,000 SF vacant
Fully Leased Potential
Maximum income potential
Cap Rate Performance Analysis
Key Investment Highlights
🎯 Strong Anchor Tenant
NAPA Auto Parts provides stable, long-term income with lease extending to 2029 and two five-year renewal options. National credit tenant with proven track record.
📈 Immediate Value-Add Opportunity
7,000 SF of leasable space (52% of total RBA) presents significant upside potential. Day Spa lease expires August 2025, providing flexibility for repositioning.
💰 Exceptional Return Potential
Projected 8.33% cap rate upon full lease-up represents a 117% increase from the vacancy scenario, demonstrating compelling value creation opportunity.
🚗 Prime Location & Access
Strategic position on Pacific Highway with excellent connectivity to Highway 99 and I-5. High visibility and accessibility for retail and service tenants.
🔧 Recently Renovated
Extensive 2024 improvements including new TPO roof with rigid insulation, two HVAC units, and exterior paint. Minimal immediate capital requirements.
💼 Flexible Investment Strategy
Suitable for both passive income investors and active value-add strategies. Strong foundation with NAPA tenancy provides downside protection.
Property Gallery
Grove Plaza Property
Comprehensive Investment Opportunity Analysis
NAPA Auto Parts Building
104 S Pacific Hwy, Cottage Grove, OR 97424
Property Overview
Current Financial Breakdown
Detailed financial overview with current tenancy, including Bochetto Day Spa.
Calculated Net Operating Income (NOI): $60,635
Yielding a Capitalization Rate (Cap Rate) of: 7.08%
Rent Roll Details
| Tenant | RBA | Expiration | Rent | Annual | Total CAMs | Total Monthly Income | Notes |
|---|---|---|---|---|---|---|---|
| NAPA Auto Parts | 6,924 SF | 08/2029 | $4,272 | $51,264 | $5,938.69 | $4,652.00 | They made a lump payment for property tax of $5,558.69
Lease Options & TermsTwo (2) five-year renewal options, NNN lease. |
| Bochetto Day Spa | 2,800 SF | 08/2025 | $1,300 | $15,600 | $1,149.86 | $1,511.78 | Prop tax $85.28/Mo. ($1,023.36/yr)
Lease Options & Terms12-month renewal option, NNN lease. |
| Vacant | 4,200 SF | -- | -- | -- | -- | -- | -- |
Financial Breakdown: Day Spa Lease Not Renewed
Illustrates the immediate financial impact if Bochetto Day Spa does not renew their lease, highlighting the current income from NAPA Auto Parts and two vacant spaces (7,000 SF combined).
Estimated Net Operating Income (NOI) with Vacancy: $43,885
Estimated Capitalization Rate (Cap Rate) with Vacancy: 4.64%
Note: This scenario highlights the immediate impact of the Day Spa vacating. The estimated expenses reflect user-provided figures for CAMs and other owner-borne costs under this scenario. The significant value-add opportunity lies in re-leasing the vacant 7,000 SF.
Projected Fully Leased Financials (Value-Add Opportunity)
This projection illustrates the significant upside potential if the two vacant spaces (totaling 7,000 SF) are successfully leased, achieving full occupancy.
Projected Net Operating Income (NOI): $78,747
Projected Capitalization Rate (Cap Rate): 8.33%
Key Investment Highlights & Value-Add Opportunity
- Solid Anchor Tenant with Significant Upside: Acquire a property anchored by NAPA Auto Parts, a reputable national tenant, currently yielding a strong 7.08% cap rate. This provides stable in-place cash flow with immediate potential for substantial growth through lease-up.
- Immediate Value-Add Potential: With the Bochetto Day Spa lease expiring in August 2025, an incoming investor gains direct control over 2,800 SF, in addition to the existing 4,200 SF vacancy, totaling 7,000 SF of prime leasable space. This substantial vacancy (52% of RBA) offers a clear path to significantly increasing returns.
- Projected High Yield: Upon successful lease-up of the vacant 7,000 SF, the projected Net Operating Income (NOI) rises to $78,747, yielding an impressive 8.33% capitalization rate. This demonstrates a compelling value-add play, aligning with strategies for long-term portfolio growth.
- Strategic Regional Connectivity: Located along Pacific Hwy with convenient access to Hwy 99 and I-5, this property benefits from strong local community engagement and regional accessibility. While Cottage Grove may be considered a secondary market, its excellent highway access and proximity to major throughfares enhance its appeal for national and regional tenants.
- Recent Capital Improvements: Extensive renovations in 2024, including a new TPO roof with 12mm rigid insulation, two new HVAC units, and new exterior paint, significantly reduce immediate capital expenditure for a new owner, providing a modernized and turn-key opportunity for the existing NAPA tenancy.
- Flexible Investment Strategy: This asset caters to both investors seeking long-term, stable NNN income from NAPA and those looking for a hands-on value-add play by aggressively repositioning the vacant spaces, reflecting a blend of in-place returns and future growth potential in line with diversified portfolios.
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