North Tacoma Mixed-Use
For Sale
$1,300,000
Pending
2712 21st St, Tacoma, WA 98406
Mixed-use building in North Tacoma with apartments and commercial spaces.
Property Size4,344 SF
Days on Market800
Property Features for 2712 21st St
General Information
Standard status
Pending
Size
4,344 SF
Property subtype
Commercial
Building Details
Year Built
2004
Listing Agency:
HOME SMART REAL ESTATE ASSOCIATES
Listed By:
JAMES DOUGHERTY
Source:
Corcoran
Added: Jun 24, 2024
Changed: Jul 6
Last Checked: Jul 23 at 7:24AM
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 HOME SMART REAL ESTATE ASSOCIATES
Investment Insights
Based on property information with market context.
This mixed-use building, constructed in 2004, is located in the North Tacoma Bridge District. The property features two 2-bedroom, 2-bathroom apartments on the upper level. Each apartment is over 1000 square feet and includes its own laundry room. The main floor, which faces N 21st St, contains two commercial spaces. Both commercial units are equipped with separate half bathrooms and air conditioning. The building has been well-maintained and is designed for easy self-management. There are five dedicated off-street parking stalls available for tenant use. The total property size is 4344 square feet.
Key Highlights
- Mixed‑use building in the desirable North Tacoma Bridge District.
- Two spacious 2‑bed, 2‑bath apartments upstairs, each over 1000 sq ft and featuring its own laundry room.
- Two commercial spaces on the main floor, each with a half bath and air conditioning.
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
$59,947
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
4.61%
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%
$1,198,940
$1.2M
Cap Rate 7%
$856,386
$856.4K
Cap Rate 9%
$666,078
$666.1K
Market Conditions
NOI Build-Up for 4,344 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
$104.3K $24.00/SF
− Vacancy
−$8.3K −$1.92/SF
EGI
$95.9K $22.08/SF
− OpEx
−$36.0K −$8.28/SF
NOI
$59.9K $13.80/SF
Area
Tacoma, WA
Vacancy
8.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,198,940
Cap Rate 7%
$856,386
Cap Rate 9%
$666,078
Alternative Uses
Best Use
Mixed Use
$856.4K
$749.3K – $999.1K
NOI $59,947 @ 7.0% cap · market cap 4.61%
Second Best
Multifamily LT 5
$817.6K
$715.4K – $953.9K
NOI $57,234 @ 7.0% cap · market cap 4.40%
Theoretical Best
Office A
$1.34M
$1.17M – $1.56M
NOI $93,466 @ 7.0% cap · market cap 7.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
790
Businesses Nearby
Explore this area
Business Placement
Demographics for 98406, WA
22,768
Population
10,748
Households
2.1
Avg Household Size
42
Median Age
48%
College-Educated
96%
High-School Grad
4.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$104,761
Median Household Income
$59,659
Median Earnings
$1,677
Median Rent
$594,100
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?
Mixed-use property - Mixed-use building in North Tacoma with apartments and commercial spaces.
Where is this mixed-use property located?
The property is located at 2712 21st St 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: Mixed‑use building in the desirable North Tacoma Bridge District.; Two spacious 2‑bed, 2‑bath apartments upstairs, each over 1000 sq ft and featuring its own laundry room.; Two commercial spaces on the main floor, each with a half bath and air conditioning.
