Norm and Brad — thank you for the chance to work with you. Here's a snapshot of your property and lease. Since McKinney first leased from you in 2018, industrial-outdoor-storage land in the Kent Valley has risen sharply — the 2027 renewal is when that value gets recognized, whether you keep the income or sell.
| Address | 4402 B St NW, Auburn, WA 98001 |
| Land | ~4.72 acres — 3 contiguous parcels |
| Parcels | 936000-0100 · -0102 · -0103 (King County) |
| Zoning | M1 — Light Industrial (City of Auburn) |
| Building | ±12,680 SF trailer-repair shop (built 2008) |
| Yard | Paved, fenced industrial-outdoor-storage yard |
| Ownership | Forty Eight Forty LLC & RIP 08 LLC (Reed family) |
| Tenant | McKinney Trailer Rentals — their Seattle branch |
| In occupancy | Since 2018 |
| Current expiration | August 31, 2028 |
| Renewal window | Opens spring / summer 2027 |
| Current rent | ~$0.25 /SF/mo (~$51,000/mo) — below market |
| Market rent | ~$0.34–$0.46 /SF/mo ($70k–$95k/mo), NNN |
| Lease type | Essentially triple-net (NNN) — see the NNN tab |
Where Your Market Is
The trailer & fleet-yard deals around you that mirror McKinney's use — both the leases and the sales that frame your rent and your value.
| Comparable tenant | Submarket | Size | Rate /SF/mo | ≈ Monthly | Type |
|---|---|---|---|---|---|
| Kenan Advantage Group | Sumner | 4.27 AC + shop | $0.422 | $78,500 | New · 10-yr |
| MV Transport | Kent | 5.41 AC | $0.424 | $99,900 | New (2026) |
| Leavitt Machinery | Auburn | 4.5 AC + 37k SF | $0.46 | $90,200 | New · 10.5-yr |
| Utility Trailer & Equipment | Auburn | 6.0 AC | $0.41 | $107,200 | Renewal |
| NW Intermodal & Tank | Auburn | 2.04 AC | $0.35→0.39 | $32,900 | New · same street |
| North Sky Communications | Auburn | 5.0 AC | $0.34 | $74,100 | New |
| Sunstate Equipment | Kent | 2.21 AC + 13k SF | $0.40 | $38,500 | New |
| Truckmovers Depot | Pacific | 3.0 AC + shop | $0.365 | $47,700 | New |
| ArcBest Freight (ABF) | Sumner | 6.37 AC | $0.34 | $94,300 | New · 10-yr |
| ICON Materials | Pacific | 7.5 AC | $0.40 | $130,700 | Renewal (FMV) |
| ABC Supply | Kent | 3.1 AC | $0.244 | $32,900 | Renewal (as-is) |
| Property | Submarket | Size | Price | $/land SF |
|---|---|---|---|---|
| Kam-Way Yard → Realterm | Sumner | 4.27 AC | $9.80M | $52.69 |
| North Sky → AAA Cooper | Kent | 2.4 AC | $7.10M | $68.01 |
| Knight Transportation | Kent | 4.54 AC | $11.60M | $58.71 |
| Quality Carriers → RealTerm | Kent | 5.38 AC | $12.50M | $53.35 |
| Kent IOS (3-parcel) → RealTerm | Kent | 9.29 AC | $28.23M | $69.80 |
| 1302 26th St NW (Qwest) | Auburn | 2.97 AC | $7.10M | $54.88 |
| 5450 A St SE | Auburn | 5.62 AC | $10.70M | $43.71 |
| Modern IOS (Thornton) | Pacific | 3.02 AC | $6.35M | $48.23 |
| GR Auto → Steel Peak | Pacific | 2.4 AC | $6.30M | $60.26 |
| Costco Yard | Sumner | 9.64 AC | $35.90M | $85.47 |
Keep the income, reset to market
Run a well-prepared, market-tested renewal in 2027, keep McKinney in place, and hold a stronger, mark-to-market income on a property whose value has stepped up — with full flexibility to sell later.
Sell as a stabilized investment
Reset the rent to market with fresh term first, then bring it to the institutional IOS buyers actively acquiring this corridor — a competitive process that captures full value at a premium price.
Sell now as a value-add investment
Sell today, as-is with the below-market lease in place. A value-add IOS buyer underwrites the built-in mark-to-market upside and runs the renewal themselves — giving you liquidity now without working the 2027 process.
What is a Triple-Net (NNN) Lease?
Plain English: in a triple-net lease you collect a base rent, and the tenant separately covers the property's operating costs — so the rent you're quoted is much closer to the rent you actually keep.
Property taxes
The King County taxes on the land & building — reimbursed by the tenant, not paid out of your rent.
Insurance
Property/casualty insurance on the premises. The tenant also carries its own liability coverage.
Maintenance
Upkeep of the yard & site — paving, fencing, lighting, drainage, and routine repairs.
| Cost | Gross lease | Triple-Net (NNN) |
|---|---|---|
| Base rent → your income | ✓ You keep it | ✓ You keep it |
| Property taxes | Landlord | Tenant |
| Property insurance | Landlord | Tenant |
| Yard / site maintenance | Landlord | Tenant |
- Tenant pays the three nets directly instead of you setting money aside out of rent.
- Spell out the maintenance — yard, paving, fencing, drainage all assigned to the tenant.
- Reset base rent to market — $70,000–$95,000/mo (NNN).
- Add fixed annual increases — typically 3–4%/yr.
- Drop the owner repair reserve — those costs sit with the tenant.
- Clean, predictable income — costs don't eat into it.
- No expense surprises — taxes/insurance/repairs rise? The tenant carries it.
- Less hassle — the tenant maintains the site.
- A higher sale price — a clean NNN at market rent is what buyers pay the most for.
- Inflation protection — the annual bumps keep income growing.
How Rent Sets Your Price
Your property is priced off its income. Value = yearly net (NNN) rent ÷ cap rate. So the rent you negotiate is the price. Slide the rent and the cap rate and watch it.
| Rent (NNN) | $/SF/mo | Monthly | Yearly (NOI) | Value @ 6.50% |
|---|---|---|---|---|
| Today | $0.25 | $51,200 | $614,400 | $9.4M |
| Low end | $0.34 | $70,000 | $840,000 | $12.9M |
| Midpoint | $0.40 | $82,500 | $990,000 | $15.2M |
| High end | $0.46 | $95,000 | $1,140,000 | $17.5M |
Our Plan & Timeline
The biggest mistake in a renewal like this is waiting. Start early and you control the conversation — set the rent expectation with comps, have time to reach a fair deal, and if McKinney leaves, re-lease or sell before the lease ends. Here's the cadence, counting down to 8/31/2028.
Get engaged & open the conversation
- Agree the plan — target rent ($70k–$95k/mo NNN), a clean NNN, term & increases.
- Reconnect with McKinney — a friendly conversation to gauge their plans. No demands yet.
- Refresh the valuation across both lots.
Put market rent, NNN & terms on the table
- Walk McKinney through the comps so the rent gap is clear and expected — not a shock.
- Frame the clean NNN structure and the other lease items.
- Give them time to absorb — planting it early is what makes the number land.
Converge on terms — or know they're leaving
Paper the renewal — or launch marketing
- If renewing: LOI → executed lease.
- If not: prepare and launch the marketing campaign.
Close the deal before the lease ends
- Renewal: tenant stays, new terms in place.
- Or a replacement tenant / buyer secured — no gap. Locked before 8/31/2028.