Tacoma Multifamily Investment
For Sale
$7,450,000
1208 S 27th St, Tacoma, WA 98409
50-unit apartment community near I-5 and Hilltop Light Rail.
Property Size41,700 SF
Days on Market156
Property Features for 1208 S 27th St
General Information
Standard status
Active
Size
41,700 SF
Property subtype
Multifamily
Occupancy
95%
Amenities
Excellent Location: Proximity to major arterials such as I-5 as well as Hilltop Light Rail Station
Excellent Historical Occupancy: Owners have been able to maintain below 5% vacancy rate
Rental Upside: Rents have 35% rental upside
Building Details
Building Size
41,700 SF
Units
50
Listing Agency:
Seattle Office
Listed By:
Aimon Heffernan · License #License(s): WA: 23029794
(206) 826-5707
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 8
Last Checked: Sep 5 at 3:36AM
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 Seattle Office
Investment Insights
Based on property information with market context.
Vista Rainier is a fifty-unit apartment community constructed in 1968, situated in the Hilltop neighborhood of Tacoma. The property is located near I-5 and approximately one mile from the Hilltop Light Rail Station. The community features forty two-bedroom, one-bathroom units averaging 848 square feet, four one-bedroom, one-bathroom units averaging 750 square feet, five studios averaging 430 square feet, and one three-bedroom, one-bathroom unit of approximately 1,000 square feet. Each unit includes a kitchen and living room. Ample on-site parking is available. The property is positioned as an investment opportunity with potential for rental upside through renovations.
Key Highlights
- Significant rental upside potential through renovations to achieve a 7% annual return.
- Excellent commuter location: close to I‑5 and one mile from the Hilltop Light Rail Station.
- Spacious units: mix of one-, two-, and three‑bedroom units, plus studios.
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
$477,463
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
6.41%
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%
$9,549,260
$9.5M
Cap Rate 7%
$6,820,900
$6.8M
Cap Rate 9%
$5,305,144
$5.3M
Market Conditions
NOI Build-Up for 41,700 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
$915.7K $21.96/SF
− Vacancy
−$47.6K −$1.14/SF
EGI
$868.1K $20.82/SF
− OpEx
−$390.7K −$9.37/SF
NOI
$477.5K $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%
$9,549,260
Cap Rate 7%
$6,820,900
Cap Rate 9%
$5,305,144
Alternative Uses
Best Use
Apartment 5plus
$6.82M
$5.97M – $7.96M
NOI $477,463 @ 7.0% cap · market cap 6.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.82M
$11.22M – $14.95M
NOI $897,217 @ 7.0% cap · market cap 12.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
750
Businesses Nearby
Explore this area
Business Placement
Demographics for 98409, WA
27,840
Population
12,136
Households
2.3
Avg Household Size
33
Median Age
21%
College-Educated
87%
High-School Grad
7.1 sq mi
ZIP Area
3,921
Density / Sq Mi
$71,649
Median Household Income
$43,652
Median Earnings
$1,579
Median Rent
$363,000
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - 50-unit apartment community near I-5 and Hilltop Light Rail.
Where is this apartment building located?
The property is located at 1208 S 27th St Tacoma, WA.
What is the asking price?
The asking price for this property is $7,450,000.
What are key features of this property?
This property features: Significant rental upside potential through renovations to achieve a 7% annual return.; Excellent commuter location: close to I‑5 and one mile from the Hilltop Light Rail Station.; Spacious units: mix of one-, two-, and three‑bedroom units, plus studios.
