411 W Main Street

As a fully leased investment property, 411 W Main Street (The Offering) is a 1,463 SF dental office building on an 8,102-sf lot located in Sheridan, Oregon.

The Offering entailed a strong character tenant (medical office) with a recently exercised lease extension, providing an income stream for investors through the middle of 2026. In late 2020 the Ownership was engaged by Phillip Taggart and David Hill (the Kidder Mathews Team) to provide guidance on how best to maximize the value of this asset and eventually market the property for sale.

The highly desirous character of tenant and lease terms (NNN lease, newly exercised option, strong regional tenant, and more) was offset by the tertiary location of Sheridan, which has limited commercial real estate activity and interest. The other challenges that were faced included the smaller size of the building, limiting the value of the income stream, as well as a clause in the existing lease giving the Tenant the right to terminate the lease at any time (given a 60-day notice). The final challenge was the COVID-19 pandemic, which was making financing challenging for investors and limiting real estate activity around the country.

The Kidder Mathews Team worked with Ownership to first provide guidance on a lease amendment, where the rent was reduced in exchange to remove the Right to Terminate clause. What was left was a clean and newly exercised 5-year NNN lease, providing a stable cash flow to a new investor. With the Kidder Mathews Teams’ aggressive marketing campaign, the Team produced multiple offers in a few months stretch, allowing for the selling side to eventually choose the future buyer. This effort proved highly successful, as the Kidder Mathews team and Ownership worked closely to produce a final sale that transacted at above ask. As of 02/25/2021, 411 W Main Street is the 2nd highest price per square foot deal ever transacted in the city of Sheridan and the 61st highest price per square foot deal ever transacted in Yamhill County (in the 96th percentile).