Off-Market Investment Property Under Contract
Working Quietly with Sellers & Buyers Can Be Beneficial
2801 E. 31st St. Spokane, WA
Medical Office Investment - Specialty Dental Brands
Total SFT: 3,864 SFT Land Size: 0.13 Acres
Daines Capital Commercial Real Estate is excited to announce that 2801 E. 31st Ave. in Spokane, Washington has officially gone under contract through a successful off-market transaction. This investment opportunity featured a 3,864 SFT medical office building leased to Hi-5 Orthodontics, part of the nationally recognized Specialty Dental Brands network, on a long-term NNN lease.
What makes this transaction especially unique is that the property was never publicly listed on the active market. Instead, this was handled as a true pocket listing, allowing both the seller and buyer to work through the transaction privately and strategically. Daines Capital worked closely with both parties throughout the process to help facilitate a smooth deal structure that aligned with each side’s investment goals.
The property itself attracted strong investor interest thanks to its combination of stable cash flow, long-term lease structure, and strong tenant profile. The building was constructed in 2019 and is backed by a 10-year NNN lease with annual 3% rent increases and renewal options, creating a reliable long-term investment opportunity. The tenant, Hi-5 Orthodontics, is part of Specialty Dental Brands’ growing national platform, which supports more than 60 practices across 20+ states.
A major component of this transaction involved coordinating a 1031 exchange, which allowed the buyer to strategically reinvest proceeds into another investment property while deferring capital gains taxes. A 1031 exchange, named after Section 1031 of the IRS tax code, allows property owners to sell an investment property and reinvest the proceeds into another “like-kind” investment property without immediately paying taxes on the gain from the sale. For many investors, this can be an extremely powerful tool for preserving equity, increasing cash flow, diversifying portfolios, or transitioning into larger or more passive investment opportunities over time.
Successfully navigating a 1031 exchange requires careful timing, communication, and coordination between all parties involved. Because these transactions are highly time-sensitive, having experienced brokers involved can make a major difference in helping buyers and sellers stay on track while identifying opportunities that fit both financial and exchange requirements.
This transaction is another example of the strong demand we continue to see for quality medical and dental investment properties throughout the Spokane market — especially opportunities with stable tenants, newer construction, and long-term lease structures. It also highlights the value of relationships and off-market networking in commercial real estate, where some of the best opportunities happen before a property ever reaches the public market.
At Daines Capital, we’re proud to help clients navigate complex transactions and create solutions tailored to their investment goals. Congratulations to both the buyer and seller on a successful closing process, and we look forward to seeing both parties continue to grow their portfolios in the future.