Extended Stay Hotel For
For Sale
$10,250,000
Pending
2101 Meridian, Puyallup, WA 98371
133-key extended stay hotel in the Seattle–Tacoma metro.
Property Size43,164 SF
Days on Market301
Property Features for 2101 Meridian
General Information
Standard status
Pending
Size
43,164 SF
Property subtype
Commercial
Building Details
Year Built
1999
Listing Agency:
CRYSTAL INVESTMENT PROPERTY LLC
Listed By:
MICHELLE KENNEDY · License #OR 970700090
Source:
Corcoran
Added: Oct 25, 2025
Changed: Jul 6
Last Checked: Jul 23 at 9:32AM
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 CRYSTAL INVESTMENT PROPERTY LLC
Investment Insights
Based on property information with market context.
HomeTowne Studios Tacoma-Puyallup is a 133-key extended stay hotel located in the high-demand Seattle–Tacoma metro. The exterior-corridor asset features queen studio units with kitchenettes, supporting long-term stays tied to workforce housing, relocation, and contract demand. The property is near year-round state fair events. Building size is approximate. Multi-Family Tax Exemption (MFTE) zoning creates flexibility for adaptive reuse. Brand termination is available for minimal liquidated damages, and a new owner can capitalize on operational inefficiencies, strong submarket fundamentals, and multiple paths to reposition or convert. This hotel is available individually or as part of a larger extended stay portfolio.
Key Highlights
- Located in the high‑demand Seattle–Tacoma metro area
- 133‑key extended stay hotel with queen studio units and kitchenettes**
- Multi‑Family Tax Exemption (MFTE) zoning allows for adaptive reuse
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
$332,147
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
3.24%
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%
$6,642,940
$6.6M
Cap Rate 7%
$4,744,957
$4.7M
Cap Rate 9%
$3,690,522
$3.7M
Market Conditions
NOI Build-Up for 43,164 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
$777.0K $18.00/SF
− Vacancy
−$77.7K −$1.80/SF
EGI
$699.3K $16.20/SF
− OpEx
−$367.1K −$8.51/SF
NOI
$332.1K $7.69/SF
Area
Pierce County, WA
Vacancy
10.00%
Lease Rate
$18.00 /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%
$6,642,940
Cap Rate 7%
$4,744,957
Cap Rate 9%
$3,690,522
Alternative Uses
Best Use
Hotel Hospitality
$4.74M
$4.15M – $5.54M
NOI $332,147 @ 7.0% cap · market cap 3.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.66M
$10.20M – $13.60M
NOI $816,069 @ 7.0% cap · market cap 7.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
236
Businesses Nearby
Explore this area
Business Placement
Demographics for 98371, WA
23,965
Population
9,937
Households
2.4
Avg Household Size
41
Median Age
29%
College-Educated
93%
High-School Grad
11.8 sq mi
ZIP Area
2,031
Density / Sq Mi
$97,290
Median Household Income
$53,957
Median Earnings
$1,654
Median Rent
$515,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - 133-key extended stay hotel in the Seattle–Tacoma metro.
Where is this hotel located?
The property is located at 2101 Meridian Puyallup, WA.
What is the asking price?
The asking price for this property is $10,250,000.
What are key features of this property?
This property features: Located in the high‑demand Seattle–Tacoma metro area; 133‑key extended stay hotel with queen studio units and kitchenettes**; Multi‑Family Tax Exemption (MFTE) zoning allows for adaptive reuse
