54-Unit Apartment
For Sale
Contact for pricing
12710 56th Ave, Tacoma, WA 98499
Built in 1985, the community offers spacious apartments with largely original interiors and an identified renovation scope.
Property Size38,988 SF
Price / SF$193.39
Days on Market140
Property Features for 12710 56th Ave
General Information
Standard status
Active
Size
38,988 SF
Total Parking Spaces
83
Property subtype
Multifamily
Property Condition
Severity
Repairs Needed
Evidence
largely original interior finishes
Additional Details
Multifamily Units
54
Building Details
Year Built
1985
Year Renovated
1990
Units
54
Listing Agency:
Kidder Mathews Tacoma
(253) 722-1421
Listed By:
Austin Kelley · License #WA
Source:
Crexi
Added: Apr 15
Changed: Aug 31
Last Checked: Aug 31 at 1:58AM
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 Kidder Mathews Tacoma
Investment Insights
Based on property information with market context.
This 54-unit apartment community was built in 1985 and includes apartment homes averaging approximately 722 square feet. Interior finishes are largely original, creating a defined improvement scope centered on kitchen and bathroom modernization, fixture updates, and adding in-unit washers and dryers, which are not currently present.
The property is situated in Lakewood within the South Sound submarket and is near Joint Base Lewis-McChord, a major regional employment center identified as a source of housing demand. The surrounding area also provides access to retail, services, and transportation corridors. The existing unit sizes and established multifamily configuration support a renovation-focused repositioning while retaining workforce-oriented housing characteristics.
The property is situated in Lakewood within the South Sound submarket and is near Joint Base Lewis-McChord, a major regional employment center identified as a source of housing demand. The surrounding area also provides access to retail, services, and transportation corridors. The existing unit sizes and established multifamily configuration support a renovation-focused repositioning while retaining workforce-oriented housing characteristics.
Key Highlights
- 54‑unit multifamily community built in 1985
- Apartment homes average approximately 722 square feet
- Largely original interior finishes
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
$446,410
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
5.92%
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%
$8,928,200
$8.9M
Cap Rate 7%
$6,377,286
$6.4M
Cap Rate 9%
$4,960,111
$5.0M
Market Conditions
NOI Build-Up for 38,988 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
$856.2K $21.96/SF
− Vacancy
−$44.5K −$1.14/SF
EGI
$811.7K $20.82/SF
− OpEx
−$365.2K −$9.37/SF
NOI
$446.4K $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%
$8,928,200
Cap Rate 7%
$6,377,286
Cap Rate 9%
$4,960,111
Alternative Uses
Best Use
Apartment 5plus
$6.38M
$5.58M – $7.44M
NOI $446,410 @ 7.0% cap · market cap 5.92%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.98M
$10.49M – $13.98M
NOI $838,866 @ 7.0% cap · market cap 11.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
54
Residential units
Location Intelligence
Trade Area within ½ mile
66
Businesses Nearby
Explore this area
Business Placement
Demographics for 98499, WA
33,188
Population
14,683
Households
2.3
Avg Household Size
35
Median Age
19%
College-Educated
85%
High-School Grad
8.8 sq mi
ZIP Area
3,771
Density / Sq Mi
$65,000
Median Household Income
$41,345
Median Earnings
$1,445
Median Rent
$370,000
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 - Built in 1985, the community offers spacious apartments with largely original interiors and an identified renovation scope.
Where is this apartment building located?
The property is located at 12710 56th Ave Tacoma, WA.
What is the asking price?
The asking price for this property is $7,540,000.
What are key features of this property?
This property features: 54‑unit multifamily community built in 1985; Apartment homes average approximately 722 square feet; Largely original interior finishes
