Building Details

Year Built 1985

Listing Agency: RE/MAX Dynamic Properties - Eagle River Branch b***@gmail.com Show Phone

Listed By: Bryan J Trombley · License #129408

Source: Viewanchoragehouses

Added: May 27 Changed: Aug 27 Last Checked: Aug 29 at 10:37AM

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Investment Insights

Based on property information with market context.

This 8,320-square-foot multifamily property was built in 1985 and has spacious units occupied by long-term tenants. Recent property improvements include a new roof, septic system, and well. The site also provides additional parking along with grass areas, giving the property useful outdoor space.

Located at 22647 Sherman St in Chugiak, Alaska, the property is positioned in a residential setting with commute access noted in the property information. The asset has been owned by one owner and presents an established multifamily configuration with existing tenancy and recently completed major system updates.

Key Highlights

• 8,320‑square‑foot multifamily property built in 1985
• New roof, septic system, and well
• Spacious units with long‑term tenants

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

$83,294

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

5.55%

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%

$1,665,880 $1.7M

Cap Rate 7%

$1,189,914 $1.2M

Cap Rate 9%

$925,489 $925.5K

Market Conditions

NOI Build-Up for 8,320 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

$158.7K $19.08/SF

− Vacancy

−$7.3K −$0.88/SF

EGI

$151.4K $18.20/SF

− OpEx

−$68.1K −$8.19/SF

NOI

$83.3K $10.01/SF

Area

Anchorage County, AK

Vacancy

4.60%

Lease Rate

$19.08 /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%

$1,665,880

Cap Rate 7%

$1,189,914

Cap Rate 9%

$925,489

Alternative Uses

Best Use

Apartment 5plus

$1.19M

$1.04M – $1.39M (±1% cap)

NOI $83,294 @ 7.0% cap · market cap 5.55%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.18M

$1.91M – $2.54M (±1% cap)

NOI $152,524 @ 7.0% cap · market cap 10.17%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Multifamily properties

Location Intelligence

Demographics for 99567, AK

9,036

Population

3,156

Households

2.9

Avg Household Size

39

Median Age

41%

College-Educated

96%

High-School Grad

675.2 sq mi

ZIP Area

13

Density / Sq Mi

$128,250

Median Household Income

$46,567

Median Earnings

$1,193

Median Rent

$437,100

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Multifamily property - Spacious units, a new roof, and on-site parking define this established multifamily property.

Where is this multifamily property located?

The property is located at 22647 Sherman St Chugiak, AK.

What is the asking price?

The asking price for this property is $1,500,000.

What are key features of this property?

This property features: 8,320‑square‑foot multifamily property built in 1985; New roof, septic system, and well; Spacious units with long‑term tenants