89-Room Limited-Service
New
For Sale
$8,950,000
5188 Capitol Blvd SE, Tumwater, WA 98501
Two-story hospitality property with an indoor spa, meeting room, fitness center, and guest laundry facilities.
Property Size44,200 SF
Days on Market2
Property Features for 5188 Capitol Blvd SE
General Information
Standard status
Active
Size
44,200 SF
Property subtype
Hotel-Motel
Amenities
Excellent Guest Reviews, #1 Hotel in Tumwater
Ideally Located off Interstate 5, Near Several Businesses
Nearby Attractions Include Olympic Flight Museum, Tumwater Historical Park, WET Science Center and More
3 Miles to Washington State Capitol
30-Minute Drive from Joint Base Lewis-McChord, Which Generates a $12 Billion Economic Impact in the Region
1-Hour Drive from Downtown Seattle and Mount Rainier National Park
Building Details
Building Size
44,200 SF
Year Built
1992
Listed By:
Clayton Hill · License #License(s): WA: 20115936
(206) 826-5811
Source:
Marcusmillichap
Added: Sep 5
Last Checked: Sep 5 at 2:49PM
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 Clayton Hill
Investment Insights
Based on property information with market context.
This two-story limited-service hotel contains 89 guest rooms and a range of guest and business amenities. The property includes a heated indoor spa, meeting room, business center, 24-hour fitness center, spacious lobby and great room, guest laundry facilities, and complimentary breakfast service. Built in 1992, the hotel operates under the Best Western brand.
The property is located at 5188 Capitol Blvd SE in Tumwater, Washington, approximately 3 miles south of Downtown Olympia and near Interstate 5. Area attractions identified in the property information include the Washington State Capitol, Olympic Flight Museum, Tumwater Historical Park, WET Science Center, and Hands On Children’s Museum.
The property is located at 5188 Capitol Blvd SE in Tumwater, Washington, approximately 3 miles south of Downtown Olympia and near Interstate 5. Area attractions identified in the property information include the Washington State Capitol, Olympic Flight Museum, Tumwater Historical Park, WET Science Center, and Hands On Children’s Museum.
Key Highlights
- 89 guest rooms in a two‑story hotel
- Heated indoor spa, 24‑hour fitness center, and guest laundry facilities
- Meeting room, business center, and spacious lobby/great room
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
$263,277
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
2.94%
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%
$5,265,540
$5.3M
Cap Rate 7%
$3,761,100
$3.8M
Cap Rate 9%
$2,925,300
$2.9M
Market Conditions
NOI Build-Up for 44,200 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
$583.4K $13.20/SF
− Vacancy
−$29.2K −$0.66/SF
EGI
$554.3K $12.54/SF
− OpEx
−$291.0K −$6.58/SF
NOI
$263.3K $5.96/SF
Area
Thurston County, WA
Vacancy
5.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
52.50%
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%
$5,265,540
Cap Rate 7%
$3,761,100
Cap Rate 9%
$2,925,300
Alternative Uses
Best Use
Hotel Hospitality
$3.76M
$3.29M – $4.39M
NOI $263,277 @ 7.0% cap · market cap 2.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.94M
$11.32M – $15.10M
NOI $905,923 @ 7.0% cap · market cap 10.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
721
Businesses Nearby
Explore this area
Business Placement
Demographics for 98501, WA
45,274
Population
19,969
Households
2.3
Avg Household Size
40
Median Age
48%
College-Educated
97%
High-School Grad
34.9 sq mi
ZIP Area
1,297
Density / Sq Mi
$95,695
Median Household Income
$55,909
Median Earnings
$1,600
Median Rent
$485,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Two-story hospitality property with an indoor spa, meeting room, fitness center, and guest laundry facilities.
Where is this hotel located?
The property is located at 5188 Capitol Blvd SE Tumwater, WA.
What is the asking price?
The asking price for this property is $8,950,000.
What are key features of this property?
This property features: 89 guest rooms in a two‑story hotel; Heated indoor spa, 24‑hour fitness center, and guest laundry facilities; Meeting room, business center, and spacious lobby/great room
