Building Details

Year Built 2013

Buildings 1

Stories 2

Tenancy Single

Listing Agency: Terrafin Real Estate b***@gmail.com Show Phone

Listed By: Barbara Williams · License #WA

Source: Crexi

Added: Dec 13, 2025 Changed: Aug 10 Last Checked: Aug 11 at 7:10PM

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Investment Insights

Based on property information with market context.

This property features a licensed childcare center spanning over 7,000 square feet, situated in Pierce County. A drive-thru coffee service caters to parents during morning drop-offs. The two-story center has classroom layouts, observation windows, playgrounds for different age groups, a large muscle room, and a multi-purpose room. Large upstairs rooms can be used for classrooms, seminars, or events, with movable walls to adjust space. An ADA-accessible lift is available. The property includes a large garden area that could be converted into another playground or sitting garden. The large, functional kitchen could be converted to commercial use with the addition of an exhaust system and fire suppression. The property may also be suitable for use as an assisted living center.

Key Highlights

• Licensed childcare center (over 7,000 sq ft) in Pierce County
• Drive‑thru coffee service for parent drop‑off convenience
• Versatile two‑story layout with classrooms, play areas, and multi‑purpose rooms

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

$72,706

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

4.28%

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%

$1,454,120 $1.5M

Cap Rate 7%

$1,038,657 $1.0M

Cap Rate 9%

$807,844 $807.8K

Market Conditions

NOI Build-Up for 7,270 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

$104.7K $14.40/SF

− Vacancy

−$7.7K −$1.07/SF

EGI

$96.9K $13.33/SF

− OpEx

−$24.2K −$3.33/SF

NOI

$72.7K $10.00/SF

Area

Pierce County, WA

Vacancy

7.40%

Lease Rate

$14.40 /SF/Yr

Expense Ratio

25.00%

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%

$1,454,120

Cap Rate 7%

$1,038,657

Cap Rate 9%

$807,844

Alternative Uses

Best Use

Specialty Retail

$1.04M

$908.8K – $1.21M (±1% cap)

NOI $72,706 @ 7.0% cap · market cap 4.28%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.96M

$1.72M – $2.29M (±1% cap)

NOI $137,448 @ 7.0% cap · market cap 8.09%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Day care centers

Suggested Use

Top Pick Storage Facility Kitchen & Bath Showroom Pet Store Food Market

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

14

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 98360, WA

15,332

Population

5,328

Households

2.9

Avg Household Size

37

Median Age

22%

College-Educated

93%

High-School Grad

67.7 sq mi

ZIP Area

226

Density / Sq Mi

$114,801

Median Household Income

$65,006

Median Earnings

$2,293

Median Rent

$466,200

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this day care centers located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Day care center - 7,000+ sqft childcare center with drive-thru in Pierce County.

Where is this day care center located?

The property is located at 20503 193rd Ave E Orting, WA.

What is the asking price?

The asking price for this property is $1,700,000.

What are key features of this property?

This property features: Licensed childcare center (over 7,000 sq ft) in Pierce County; Drive‑thru coffee service for parent drop‑off convenience; Versatile two‑story layout with classrooms, play areas, and multi‑purpose rooms