Historic Downtown Apartment
For Sale
$2,100,000
201 N Commercial St, Bellingham, WA 98225
Two-story, sixteen-unit apartment community in downtown Bellingham.
Property Size11,180 SF
Days on Market154
Property Features for 201 N Commercial St
General Information
Standard status
Active
Size
11,180 SF
Property subtype
Multifamily
Occupancy
95%
Amenities
Pride of ownership asset in a highly unique downtown Bellingham location
Excellent in-place return: 7.08% cap rate on T-12 expenses
Highly desirable unit characteristics: 9-foot ceilings and excellent natural light
Opportunity to grow gross income approximately 15% through utility recapture and eliminating loss-to-lease
Large unfinished basement presents opportunity for further income creation
Three owned sets of laundry machines are provided for tenants in the basement
Building Details
Building Size
11,180 SF
Units
16
Listed By:
Zac Mazzuca · License #License(s): WA: 22026573
(206) 826-5731
Source:
Marcusmillichap
Added: Apr 8
Changed: Sep 3
Last Checked: Sep 7 at 5:03AM
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 Zac Mazzuca
Investment Insights
Based on property information with market context.
The Avalon, originally constructed between 1900 and 1906, is a two-story apartment community with sixteen units located in downtown Bellingham. The building was initially designed as ten large flats and was described as the most modern and leading fashionable apartment house in the city. The property features nine-foot ceilings in all units and ample natural light through large windows. The original fir siding is in excellent condition, adding to the building's historic charm. The unit mix includes two studios of approximately 400 square feet, eight one-bedroom units averaging approximately 600 square feet, and six two-bedroom units averaging approximately 930 square feet. All units retain their original trim, and many have original fir flooring that has been repainted. Some units have been upgraded with baseboard heat, and all units have radiator heat served by a steam boiler in the basement. The electrical system features Square D electrical panels, and there is no known knob-and-tube wiring. Plumbing has been partially updated. The property offers a going-in return of 6.9% with the opportunity to achieve well north of a 7% pro forma return with normalized expenses.
Key Highlights
- Excellent price‑per‑unit ($146,875) and price‑per‑square‑foot ($210) metrics.
- Strong going‑in return of 6.9% with potential to exceed 7% pro forma.
- Historic building (built 1900‑1906) with original trim and some original fir flooring.**
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
$120,422
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
5.73%
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%
$2,408,440
$2.4M
Cap Rate 7%
$1,720,314
$1.7M
Cap Rate 9%
$1,338,022
$1.3M
Market Conditions
NOI Build-Up for 11,180 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
$228.1K $20.40/SF
− Vacancy
−$9.1K −$0.82/SF
EGI
$218.9K $19.58/SF
− OpEx
−$98.5K −$8.81/SF
NOI
$120.4K $10.77/SF
Area
Whatcom County, WA
Vacancy
4.00%
Lease Rate
$20.40 /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%
$2,408,440
Cap Rate 7%
$1,720,314
Cap Rate 9%
$1,338,022
Alternative Uses
Best Use
Apartment 5plus
$1.72M
$1.51M – $2.01M
NOI $120,422 @ 7.0% cap · market cap 5.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.64M
$2.31M – $3.08M
NOI $184,621 @ 7.0% cap · market cap 8.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,556
Businesses Nearby
Explore this area
Business Placement
Demographics for 98225, WA
49,078
Population
24,202
Households
2
Avg Household Size
31
Median Age
48%
College-Educated
96%
High-School Grad
12.6 sq mi
ZIP Area
3,895
Density / Sq Mi
$62,220
Median Household Income
$33,122
Median Earnings
$1,430
Median Rent
$588,800
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 - Two-story, sixteen-unit apartment community in downtown Bellingham.
Where is this apartment building located?
The property is located at 201 N Commercial St Bellingham, WA.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: Excellent price‑per‑unit ($146,875) and price‑per‑square‑foot ($210) metrics.; Strong going‑in return of 6.9% with potential to exceed 7% pro forma.; Historic building (built 1900‑1906) with original trim and some original fir flooring.**
