Midtown Assemblage
For Sale
$2,050,000
123 E Fireweed Ln, Anchorage, AK 99503
Two adjacent B-3 zoned properties with redevelopment potential.
Property Size12,200 SF
Price / SF$168.03
Days on Market153
Property Features for 123 E Fireweed Ln
General Information
Standard status
Active
Size
12,200 SF
Listing Agency:
Berkshire Hathaway HomeServices Alaska Realty
(907) 646-3600
Listed By:
J. Michael James · License #AK.15758
(907) 646-3600
Source:
Exprealty
Added: Mar 25
Changed: Aug 23
Last Checked: Aug 22 at 5:21AM
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 Berkshire Hathaway HomeServices Alaska Realty
Investment Insights
Based on property information with market context.
This offering presents a rare opportunity to acquire a combined 16,200 square foot assemblage of two adjacent properties zoned B-3 in Midtown. The offering includes two properties: a 12,200 square foot two-story office building and a 4,000 square foot former restaurant with walkout basement storage. These properties are being offered together, presenting excellent potential for redevelopment, owner-users, or investment in a highly visible and centrally located corridor.
Key Highlights
- Combined 16,200 SF assemblage of two adjacent properties.
- B‑3 zoning allows for redevelopment, owner‑user, or investment.
- Highly visible and centrally located in Midtown.
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
$152,988
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
7.46%
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%
$3,059,760
$3.1M
Cap Rate 7%
$2,185,543
$2.2M
Cap Rate 9%
$1,699,867
$1.7M
Market Conditions
NOI Build-Up for 12,200 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
$278.2K $22.80/SF
− Vacancy
−$33.4K −$2.74/SF
EGI
$244.8K $20.06/SF
− OpEx
−$91.8K −$7.52/SF
NOI
$153.0K $12.54/SF
Area
Anchorage, AK
Vacancy
12.00%
Lease Rate
$22.80 /SF/Yr
Expense Ratio
37.50%
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%
$3,059,760
Cap Rate 7%
$2,185,543
Cap Rate 9%
$1,699,867
Alternative Uses
Best Use
Mixed Use
$2.19M
$1.91M – $2.55M
NOI $152,988 @ 7.0% cap · market cap 7.46%
Second Best
Office B
$2.14M
$1.87M – $2.50M
NOI $149,877 @ 7.0% cap · market cap 7.31%
Theoretical Best
Specialty Retail
$3.31M
$2.90M – $3.86M
NOI $231,898 @ 7.0% cap · market cap 11.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 99503, AK
13,550
Population
7,411
Households
1.8
Avg Household Size
36
Median Age
30%
College-Educated
91%
High-School Grad
20.7 sq mi
ZIP Area
655
Density / Sq Mi
$76,888
Median Household Income
$46,734
Median Earnings
$1,185
Median Rent
$316,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two adjacent B-3 zoned properties with redevelopment potential.
Where is this mixed-use property located?
The property is located at 123 E Fireweed Ln Anchorage, AK.
What is the asking price?
The asking price for this property is $2,050,000.
What are key features of this property?
This property features: Combined 16,200 SF assemblage of two adjacent properties.; B‑3 zoning allows for redevelopment, owner‑user, or investment.; Highly visible and centrally located in Midtown.
