Mixed-Use Building with Income
For Sale
$979,950
Pending
5435 M St, Tacoma, WA 98408
Two-story mixed-use building with apartments, office space, and cell tower.
Property Size7,875 SF
Days on Market546
Property Features for 5435 M St
General Information
Standard status
Pending
Size
7,875 SF
Property subtype
Commercial
Building Details
Year Built
1946
Listing Agency:
KELLER WILLIAMS REALTY TACOMA
Listed By:
JEFF JENSEN
(253) 460-8640
Source:
Corcoran
Added: Mar 7, 2025
Changed: Jul 6
Last Checked: Jul 23 at 9:24AM
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 KELLER WILLIAMS REALTY TACOMA
Investment Insights
Based on property information with market context.
This two-story mixed-use building offers approximately 7,875 square feet of space. The building features five apartment units on the upper level. The main floor is primarily office space with one additional apartment suitable for ADA or special needs. Included in the sale are two one-car garage spaces located off the alleyway. A lease agreement with T-Mobile for a cell tower provides an additional income stream. The property has been partially upgraded in the office area, and the apartments have been updated over the years. This building is suitable for owner-occupants, investors, or non-profit organizations.
Key Highlights
- Mixed‑use building with multiple income streams (apartments, office, cell tower lease).
- Turn‑key condition with partially upgraded office space and updated apartments.
- Approximately 8,000 sq ft of space across two levels.
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
$90,168
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
9.20%
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%
$1,803,360
$1.8M
Cap Rate 7%
$1,288,114
$1.3M
Cap Rate 9%
$1,001,867
$1.0M
Market Conditions
NOI Build-Up for 7,875 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
$172.9K $21.96/SF
− Vacancy
−$9.0K −$1.14/SF
EGI
$163.9K $20.82/SF
− OpEx
−$73.8K −$9.37/SF
NOI
$90.2K $11.45/SF
Area
Tacoma, WA
Vacancy
5.20%
Lease Rate
$21.96 /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%
$1,803,360
Cap Rate 7%
$1,288,114
Cap Rate 9%
$1,001,867
Alternative Uses
Best Use
Office B
$1.82M
$1.59M – $2.13M
NOI $127,575 @ 7.0% cap · market cap 13.02%
Second Best
Mixed Use
$1.55M
$1.36M – $1.81M
NOI $108,675 @ 7.0% cap · market cap 11.09%
Theoretical Best
Office A
$2.42M
$2.12M – $2.82M
NOI $169,439 @ 7.0% cap · market cap 17.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
339
Businesses Nearby
Explore this area
Business Placement
Demographics for 98408, WA
20,566
Population
8,418
Households
2.4
Avg Household Size
38
Median Age
25%
College-Educated
90%
High-School Grad
3.4 sq mi
ZIP Area
6,049
Density / Sq Mi
$78,855
Median Household Income
$45,786
Median Earnings
$1,610
Median Rent
$379,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-story mixed-use building with apartments, office space, and cell tower.
Where is this mixed-use property located?
The property is located at 5435 M St Tacoma, WA.
What is the asking price?
The asking price for this property is $979,950.
What are key features of this property?
This property features: Mixed‑use building with multiple income streams (apartments, office, cell tower lease).; Turn‑key condition with partially upgraded office space and updated apartments.; Approximately 8,000 sq ft of space across two levels.
