10-Unit Apartment Building with Dog
For Sale
$1,300,000
1405 Martin Luther King Jr Way, Tacoma, WA 98405
Two-story property offers separately metered one-bedroom units, laundry space, and gated access.
Property Size5,000 SF
Price / SF$260
Days on Market46
Property Features for 1405 Martin Luther King Jr Way
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Multi-Family
Site & Location
Public Transit
Yes
Utilities to Site
Yes
Units
Unit Mix
10 x 1BR/1BA
Multifamily Units
10
Amenities
laundry room
storage room
gated property
dog run
Building Details
Year Built
1968
Stories
2
Listing Agency:
Theory Real Estate
Listed By:
Ronald Dudley
Source:
Montgomeryht
Added: Jul 20
Changed: Aug 29
Last Checked: Sep 1 at 10:51PM
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 Theory Real Estate
Investment Insights
Based on property information with market context.
This 5,680-square-foot apartment property contains 10 units arranged across two stories, with five residences on each level. Every apartment includes one bedroom and one bathroom, and each unit is separately metered. On-site amenities include a laundry room, storage room, and a fenced dog run. Interior and exterior updates have been completed, and the property was built in 1968.
Located at 1405 Martin Luther King Jr in Tacoma, the gated complex is near the Tacoma Link Light Rail, UW Tacoma, the Stadium District, hospitals, restaurants, shops, and entertainment venues.
Located at 1405 Martin Luther King Jr in Tacoma, the gated complex is near the Tacoma Link Light Rail, UW Tacoma, the Stadium District, hospitals, restaurants, shops, and entertainment venues.
Key Highlights
- 10‑unit apartment complex with 5 units on each of 2 stories
- Each unit is configured with 1 bedroom and 1 bathroom
- 5,680 square feet with separately metered units
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
$57,250
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
4.40%
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%
$1,145,000
$1.1M
Cap Rate 7%
$817,857
$817.9K
Cap Rate 9%
$636,111
$636.1K
Market Conditions
NOI Build-Up for 5,000 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
$109.8K $21.96/SF
− Vacancy
−$5.7K −$1.14/SF
EGI
$104.1K $20.82/SF
− OpEx
−$46.8K −$9.37/SF
NOI
$57.2K $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%
$1,145,000
Cap Rate 7%
$817,857
Cap Rate 9%
$636,111
Alternative Uses
Best Use
Apartment 5plus
$817.9K
$715.6K – $954.2K
NOI $57,250 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.54M
$1.34M – $1.79M
NOI $107,580 @ 7.0% cap · market cap 8.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
3,789
Businesses Nearby
Explore this area
Business Placement
Demographics for 98405, WA
24,617
Population
11,645
Households
2.1
Avg Household Size
37
Median Age
31%
College-Educated
94%
High-School Grad
4.1 sq mi
ZIP Area
6,004
Density / Sq Mi
$80,024
Median Household Income
$51,028
Median Earnings
$1,480
Median Rent
$443,800
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 property offers separately metered one-bedroom units, laundry space, and gated access.
Where is this apartment building located?
The property is located at 1405 Martin Luther King Jr Way Tacoma, WA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: 10‑unit apartment complex with 5 units on each of 2 stories; Each unit is configured with 1 bedroom and 1 bathroom; 5,680 square feet with separately metered units
