Midscale Hotel with Indoor
For Sale
$7,250,000
1400 S 348th St, Federal Way, WA 98003
Midscale franchised hotel with 65 rooms, business center, fitness center, and indoor pool, built in 2002 and renovated in 2020.
Property Size39,673 SF
Lot Size2.06 Acres
Price / SF$182.74
Days on Market160
Property Features for 1400 S 348th St
General Information
Standard status
Active
Size
39,673 SF
Lot size
2.06 Acres
Property subtype
Hospitality
Amenities
Business Center
Fitness Center
Indoor Pool
Building Details
Year Built
2002
Year Renovated
2020
Stories
3
Listing Agency:
NAI Puget Sound Properties
Listed By:
Itzik Mizrahi
(425) 586-5637
Source:
Nai-psp
Added: Apr 1
Changed: Aug 21
Last Checked: Jul 23 at 2:36PM
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 NAI Puget Sound Properties
Investment Insights
Based on property information with market context.
Quality Inn & Suites Federal Way is a franchised midscale hotel on an approximately 2.06-acre site with 65 guest rooms in a single 3-story building. Originally constructed in 2002 and extensively renovated in 2020, the property offers a business center, fitness center, and indoor pool.
The hotel is positioned within the Kent/Renton submarket of the Seattle/Tacoma metropolitan area, with access that the marketing materials describe as supportive of lodging demand due to proximity to major employment centers, retail amenities, and heavily traveled transportation corridors.
Existing plans provide the opportunity to expand the hotel by an estimated 22–24 additional keys, creating potential for growth and reconfiguration through expansion and redevelopment optionality.
The hotel is positioned within the Kent/Renton submarket of the Seattle/Tacoma metropolitan area, with access that the marketing materials describe as supportive of lodging demand due to proximity to major employment centers, retail amenities, and heavily traveled transportation corridors.
Existing plans provide the opportunity to expand the hotel by an estimated 22–24 additional keys, creating potential for growth and reconfiguration through expansion and redevelopment optionality.
Key Highlights
- Midscale franchised hotel with 65 guest rooms across 3 stories on a 2.06‑acre site
- 39,673 SF total building size; originally constructed in 2002
- Extensively renovated in 2020
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
$503,695
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
6.95%
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%
$10,073,900
$10.1M
Cap Rate 7%
$7,195,643
$7.2M
Cap Rate 9%
$5,596,611
$5.6M
Market Conditions
NOI Build-Up for 39,673 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
$1.36M $34.18/SF
− Vacancy
−$295.6K −$7.45/SF
EGI
$1.06M $26.73/SF
− OpEx
−$556.7K −$14.03/SF
NOI
$503.7K $12.70/SF
Area
King County, WA
Vacancy
21.80%
Lease Rate
$34.18 /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%
$10,073,900
Cap Rate 7%
$7,195,643
Cap Rate 9%
$5,596,611
Alternative Uses
Best Use
Hotel Hospitality
$7.20M
$6.30M – $8.39M
NOI $503,695 @ 7.0% cap · market cap 6.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.89M
$13.90M – $18.54M
NOI $1,112,304 @ 7.0% cap · market cap 15.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,257
Businesses Nearby
Explore this area
Business Placement
Demographics for 98003, WA
51,751
Population
20,380
Households
2.5
Avg Household Size
37
Median Age
28%
College-Educated
88%
High-School Grad
11.5 sq mi
ZIP Area
4,500
Density / Sq Mi
$70,800
Median Household Income
$39,497
Median Earnings
$1,650
Median Rent
$428,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Midscale franchised hotel with 65 rooms, business center, fitness center, and indoor pool, built in 2002 and renovated in 2020.
Where is this hotel located?
The property is located at 1400 S 348th St Federal Way, WA.
What is the asking price?
The asking price for this property is $7,250,000.
What are key features of this property?
This property features: Midscale franchised hotel with 65 guest rooms across 3 stories on a 2.06‑acre site; 39,673 SF total building size; originally constructed in 2002; Extensively renovated in 2020
