Two-Bedroom Apartment
For Sale
$9,350,000
2220 SW 337th Pl, Federal Way, WA 98023
Well-maintained apartment community offering two-bedroom homes with in-unit washers and dryers and on-site parking.
Property Size37,744 SF
Days on Market94
Property Features for 2220 SW 337th Pl
General Information
Standard status
Active
Size
37,744 SF
Property subtype
Multifamily
Additional Details
Cap Rate
5.97%
Amenities
Primarily Two-Bedroom Apartment Homes with Strong Tenant Appeal
In-Unit Washers and Dryers Enhancing Resident Convenience
Well-Maintained 1980s Construction
Rare Opportunity to Acquire Multifamily Housing in Established Federal Way Submarket
Rental Upside Through Continued Asset Management and Lease Optimization
Located in a Quiet Residential Neighborhood in Federal Way
Walking Distance to Grocery Stores, Retail, and Daily Services
Building Details
Building Size
37,744 SF
Year Built
1980
Units
49
Listing Agency:
Seattle Office
Listed By:
Rich Day · License #License(s): WA: 110473
(206) 826-5814
Source:
Marcusmillichap
Added: Jun 10
Changed: Aug 8
Last Checked: Sep 11 at 4:36AM
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.
Cedar Gardens is a well-maintained multifamily community originally constructed in the 1980s. The property features primarily two-bedroom apartment homes, a configuration well-suited for families, roommates, and workforce tenants seeking more space. Each unit includes an in-unit washer and dryer, adding day-to-day convenience for residents. On-site parking is also provided, supporting resident needs and making arrivals and daily routines more efficient.
Located at 2220 SW 337th Place in Federal Way, the community sits within a quiet residential neighborhood in South King County’s established housing market. The surrounding area is predominantly residential, with grocery stores, restaurants, and neighborhood retail services described as within walking distance. This nearby everyday access supports a neighborhood-oriented lifestyle for residents.
Cedar Gardens offers practical living and operations for owners and operators looking to manage a two-bedroom-focused apartment community with in-unit laundry and parking on-site. With amenities aimed at convenience and unit layouts that prioritize larger living arrangements, the property can support tenant needs for longer-stay households who value self-contained laundry and straightforward parking access.
Located at 2220 SW 337th Place in Federal Way, the community sits within a quiet residential neighborhood in South King County’s established housing market. The surrounding area is predominantly residential, with grocery stores, restaurants, and neighborhood retail services described as within walking distance. This nearby everyday access supports a neighborhood-oriented lifestyle for residents.
Cedar Gardens offers practical living and operations for owners and operators looking to manage a two-bedroom-focused apartment community with in-unit laundry and parking on-site. With amenities aimed at convenience and unit layouts that prioritize larger living arrangements, the property can support tenant needs for longer-stay households who value self-contained laundry and straightforward parking access.
Key Highlights
- Cedar Gardens apartment community at 2220 SW 337th Place in Federal Way, WA
- Originally constructed in the 1980s multifamily community
- Primarily 2‑bedroom apartment homes, appealing to families, roommates, and workforce tenants
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
$586,655
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
6.27%
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%
$11,733,100
$11.7M
Cap Rate 7%
$8,380,786
$8.4M
Cap Rate 9%
$6,518,389
$6.5M
Market Conditions
NOI Build-Up for 37,744 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
$1.13M $30.00/SF
− Vacancy
−$65.7K −$1.74/SF
EGI
$1.07M $28.26/SF
− OpEx
−$480.0K −$12.72/SF
NOI
$586.7K $15.54/SF
Area
King County, WA
Vacancy
5.80%
Lease Rate
$30.00 /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%
$11,733,100
Cap Rate 7%
$8,380,786
Cap Rate 9%
$6,518,389
Alternative Uses
Best Use
Apartment 5plus
$8.38M
$7.33M – $9.78M
NOI $586,655 @ 7.0% cap · market cap 6.27%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.12M
$13.23M – $17.64M
NOI $1,058,221 @ 7.0% cap · market cap 11.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
470
Businesses Nearby
Explore this area
Business Placement
Demographics for 98023, WA
51,713
Population
18,777
Households
2.8
Avg Household Size
38
Median Age
34%
College-Educated
93%
High-School Grad
10.3 sq mi
ZIP Area
5,021
Density / Sq Mi
$101,960
Median Household Income
$50,186
Median Earnings
$1,875
Median Rent
$545,600
Median Home Value
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Multifamily property - Well-maintained apartment community offering two-bedroom homes with in-unit washers and dryers and on-site parking.
Where is this multifamily property located?
The property is located at 2220 SW 337th Pl Federal Way, WA.
What is the asking price?
The asking price for this property is $9,350,000.
What are key features of this property?
This property features: Cedar Gardens apartment community at 2220 SW 337th Place in Federal Way, WA; Originally constructed in the 1980s multifamily community; Primarily 2‑bedroom apartment homes, appealing to families, roommates, and workforce tenants
