Add Listing
    For Sale
    • For Sale
    • For Lease
    • Recently Sold
    • Property Lookup
    • Brokers
    Downtown Tacoma Mixed-Use Opportunity Title is generated by Realmo AI

    2505 Tacoma Avenue S, Tacoma, WA 98402

    View on Map
    Claim this Listing
    For Sale
    $239,000

    Mixed-use property in downtown Tacoma with WR zoning.

    Type:Commercial
    Property size:
    1,320 SF
    Lot size:
    0.07 Acres
    Price / SF:
    $181/SF
    Added:
    May 31, 2024
    Days on Market:
    737
    Last Refresh:
    May 10 at 8:43 pm

    Property Features for 2505 Tacoma Avenue S

    General Information

    Standard status
    Active
    Size
    1,320 SF
    Lot size
    0.07 Acres
    Property subtype
    Commercial

    Building Details

    Year Built
    1940

    We can help!

    Listing Contact
    LIBBY WILLIAMS

    Listing agent LIBBY WILLIAMS

    Listing office GOLDHOUSE REALTY

    Listing date May 31, 2024

    Source Corcoran

    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 GOLDHOUSE REALTY

    HighLights

    • Coveted WR Zoning: Allows for Multi‑family, Commercial, Business, Retail Storefront, and Mixed‑use Development.
    • Prime Downtown Tacoma Location: Situated in a vibrant urban area.
    • 1,320 sq. ft. Building on a 3,000 sq ft Lot: Offers a substantial footprint.
    • Proximity to Amenities: Close to eateries, entertainment, transportation hubs, and cultural attractions.
    • Effortless Commuting Connectivity: Ideal location for residents and businesses.
    • Year Built 1940: Historic building with potential for renovation or redevelopment.

    Overview

    This 1,320 square foot building is located in downtown Tacoma on a 3,000 square foot lot. The property is zoned WR for Multi-family, Commercial, Business, Retail Storefront and Mixed-use Development. It is located in close proximity to eateries, entertainment, transportation hubs, and historic cultural attractions. The location offers commuting connectivity for residents and businesses.

    Local Financial Insights For Mixed Use

    Simulate Cap Rate and NOI

    NOI Build-Up
    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.

    Component $ $/SF
    Gross rent $31.7k $24.00
    − Vacancy −$2.5k −$1.92
    EGI $29.1k $22.08
    − OpEx −$10.9k −$8.28
    NOI $18.2k $13.80
    1,320 SF · lease $24.00/SF/yr · vacancy 8.00% · expense 37.50%

    Alternative Uses

    Best Use
    Mixed Use
    $260.2K
    $227.7K – $303.6K (±1% cap)
    NOI $18,216 @ 7.0% cap · market cap 7.62%
    Second Best
    Retail
    $226.9K
    $198.6K – $264.7K (±1% cap)
    NOI $15,884 @ 7.0% cap · market cap 6.65%
    Theoretical Best
    Office A
    $405.7K
    $355.0K – $473.4K (±1% cap)
    NOI $28,401 @ 7.0% cap · market cap 11.88%
    Zoning and permitted uses should be independently verified with local authorities.
    Property Profile Location Intelligence

    Current Use by Public Records

    Storefront properties

    Suggested Use

    Real Estate Agency Law Firm Restaurant Spa & Massage Center Dental Office Hair Salon Nail Salon Gym & Fitness Center Building Supply Skin Care Clinic

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Tacoma
    County
    Pierce
    State
    Washington
    Longitude
    -122.441
    Latitude
    47.2381

    Nearby Similar for Sale

    • $1,799,000

      Mixed-Use Multifamily Investment Opportunity

      Value-add mixed-use multifamily property with income and upside potential.
      9618 Pacific Avenue, Tacoma, WA 98444
      View Details
    • $3,399,000

      Multifamily Opportunity in Tacoma

      Value-add multifamily property with renovation and income growth potential.
      7603 Pacific Avenue, Tacoma, WA 98408
      View Details
    • $2,885,000
      8,640 SF

      Tacoma Warehouse with Secured Yard

      Warehouse with secured yard, close to major highways and port.
      10324 Portland Ave E, Tacoma, WA 98445
      View Details
    • $675,000
      2,630 SF

      Downtown Tacoma Office/Retail Space

      2,630 SF office/retail space in Tacoma's vibrant downtown.
      732 Broadway Ste 102, Tacoma, WA 98402
      View Details
    • $499,000
      2,605 SF

      Standalone Commercial Building Near Highway

      Commercial building with flexible space, convenient location, and high visibility.
      3108 Union Ave, Tacoma, WA 98409
      View Details
    • $550,000
      2,924 SF

      Three-Unit Office Building

      Well-maintained three-unit office building with a newly installed 30-year roof and long-term occupancy in Tacoma.
      820-820 S 6th Ave, Tacoma, WA 98405
      View Details
    • $1,400,000
      3,096 SF

      Versatile Commercial Building Near Hospital

      3,096 SF commercial building near Tacoma General Hospital.
      223 N K Street, Tacoma, WA 98403
      View Details
    • $3,539,000
      9,424 SF

      Tacoma Retail Center For Sale

      9,424 SF retail center in Tacoma, WA for sale.
      11401 Steele Street South, Tacoma, WA, 98444
      View Details
    • $10,000
      4,960 SF

      South Tacoma Way Retail Warehouse

      4,960 SF retail warehouse with I-502 zoning and visibility.
      3201 South Tacoma Way, Tacoma, WA 98409
      View Details
    • $2,625,000
      12,000 SF

      Downtown Tacoma Investment Property

      Fully leased 12,000 SF building in downtown Tacoma for sale.
      102 Puyallup Avenue, Tacoma, WA 98421
      View Details
    • $1,450,000
      25,500 SF

      Tacoma Redevelopment Opportunity

      25,500 SF building on 9,184 SF site in downtown Tacoma.
      919 Market Street, Tacoma, WA 98402
      View Details
    • $2,625,000
      12,000 SF

      Tacoma Investment Property For Sale

      Fully leased 12,000 SF building in downtown Tacoma.
      102 Puyallup Avenue, Tacoma, WA 98421
      View Details

    FAQs

    What type of property is this?
    Mixed-use property - Mixed-use property in downtown Tacoma with WR zoning.
    Where is this mixed-use property located?
    The property is located at 2505 Tacoma Avenue S Tacoma, WA.
    What is the asking price?
    The asking price for this property is $239,000.
    What are key features of this property?
    This property features: Coveted WR Zoning: Allows for Multi‑family, Commercial, Business, Retail Storefront, and Mixed‑use Development.; Prime Downtown Tacoma Location: Situated in a vibrant urban area.; 1,320 sq. ft. Building on a 3,000 sq ft Lot: Offers a substantial footprint.
    (253) 254-6139
    We can help!
    Listing Contact
    LIBBY WILLIAMS
    Request Owner's contact information
    Message sent successfully
    Error
    If you are the owner or broker of this property and would like to edit or remove this listing please send a message to web site administrator.
    Message sent successfully
    Error
    Email to Your Friends
    Link copied to clipboard
    Separate multiple addresses with a comma
    Message sent successfully
    Error

    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    Thanks! Your message was sent.
    Error! Your message wasn't sent.
    Please enter your name
    Please enter email
    Please enter the email in the correct format
    Please enter phone
    Please enter the number in the correct format
    Please enter message
    Thank You

    You are Unsubscribed From Notifications

    Thank You for Inquiry
    2505 Tacoma Avenue S, Tacoma, WA 98402
    letter with green check mark
    Check your email
    We sent you the
    agent's contact details. yellow underline
    Can't find it?
    Please check your junk/spam folder.
    Google sign-in failed. Please try again or use another login method.
    Sign Up Successful!
    You now have access to more from Realmo!