Building Details

Year Built 1978

Buildings 4

Listing Agency: Abbey Realty Inc

Listed By: Joshua Abbey Show Phone

Source: Century21northhomes

Added: May 20 Changed: Sep 12 Last Checked: Sep 13 at 9:28AM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Abbey Realty Inc

Investment Insights

Based on property information with market context.

This apartment building configuration features four duplexes, offering eight two-bedroom, one-bath units. Each unit includes a private one-car garage, supporting tenant privacy and straightforward day-to-day management. The property was built in 1978.

Roofing has been recently updated, with roofs approximately 5 years old, helping minimize near-term capital expenditures. The owner highlights a cap rate of 6.7%.

Located in Elma, Washington, the property is positioned for a small-town lifestyle with access to local amenities and outdoor recreation. Olympia is approximately 30 miles away, providing a practical commute option while keeping day-to-day needs close to home.

Key Highlights

• Four duplexes totaling eight units
• Eight two‑bedroom, one‑bath unit layout
• Private one‑car garage for each unit

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$56,611

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

3.54%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,132,220 $1.1M

Cap Rate 7%

$808,729 $808.7K

Cap Rate 9%

$629,011 $629.0K

Market Conditions

NOI Build-Up for 6,688 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$108.3K $16.20/SF

− Vacancy

−$5.4K −$0.81/SF

EGI

$102.9K $15.39/SF

− OpEx

−$46.3K −$6.93/SF

NOI

$56.6K $8.46/SF

Area

Grays Harbor County, WA

Vacancy

5.00%

Lease Rate

$16.20 /SF/Yr

Expense Ratio

45.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,132,220

Cap Rate 7%

$808,729

Cap Rate 9%

$629,011

Alternative Uses

Best Use

Apartment 5plus

$808.7K

$707.6K – $943.5K (±1% cap)

NOI $56,611 @ 7.0% cap · market cap 3.54%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.84M

$1.61M – $2.15M (±1% cap)

NOI $129,052 @ 7.0% cap · market cap 8.07%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Apartment buildings

Suggested Use

Top Pick Auto Parts Store Dental Office Pharmacy Plumbing Service Storage Facility Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

8

Residential units

Location Intelligence

Trade Area within ½ mile

19

Businesses Nearby

Explore this area Business Placement

Demographics for 98541, WA

10,509

Population

4,527

Households

2.3

Avg Household Size

42

Median Age

16%

College-Educated

87%

High-School Grad

195.6 sq mi

ZIP Area

54

Density / Sq Mi

$64,659

Median Household Income

$44,457

Median Earnings

$928

Median Rent

$338,000

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this apartment buildings located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Apartment building - Four duplexes totaling eight two-bedroom units with private one-car garages and newer roofs.

Where is this apartment building located?

The property is located at 106 Garden Hill Elma, WA.

What is the asking price?

The asking price for this property is $1,600,000.

What are key features of this property?

This property features: Four duplexes totaling eight units; Eight two‑bedroom, one‑bath unit layout; Private one‑car garage for each unit