Renovated Fourplex with Covered
For Sale
$895,000
34246 1st Pl S, Federal Way, WA 98003
Four occupied one-bedroom homes each include a fireplace, in-unit laundry, and a private balcony or deck.
Property Size3,000 SF
Price / SF$298.33
Days on Market8
Property Features for 34246 1st Pl S
General Information
Standard status
Active
Size
3,000 SF
Property subtype
Multi-Family
Site & Location
Highway Access
Yes
Public Transit
Yes
Units
Unit Mix
4 x 1BR/1BA
Multifamily Units
4
Amenities
fireplace
in-unit washer/dryer
balcony/deck
community sports courts
play areas
Building Details
Year Built
1977
Listing Agency:
Skyline Properties, Inc.
Listed By:
Michael Fladseth
(206) 795-9500
Source:
Handrisrealty
Added: Sep 20
Changed: Sep 26
Last Checked: Sep 26 at 2:58PM
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 Skyline Properties, Inc.
Investment Insights
Based on property information with market context.
This fourplex contains four occupied units, each with one bedroom, one full bathroom, a fireplace, in-unit washer and dryer, and a balcony or deck. The building totals 3,000 square feet. Exterior updates in 2024 included a new roof, new siding, and fresh interior and exterior paint. Covered parking is assigned to each unit, with additional visitor parking available.
The property is in Federal Way, near Redondo Beach, shopping, restaurants, schools, parks, a library, and hospitals. Access to I-5, Hwy 99, and Hwy 18 serves the area, with light rail identified as upcoming.
The property is in Federal Way, near Redondo Beach, shopping, restaurants, schools, parks, a library, and hospitals. Access to I-5, Hwy 99, and Hwy 18 serves the area, with light rail identified as upcoming.
Key Highlights
- Four occupied units, each with 1 bedroom and 1 full bathroom
- 3,000‑square‑foot building
- Fireplace, in‑unit washer and dryer, and balcony or deck in every unit
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
$50,599
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
5.65%
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%
$1,011,980
$1.0M
Cap Rate 7%
$722,843
$722.8K
Cap Rate 9%
$562,211
$562.2K
Market Conditions
NOI Build-Up for 3,000 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
$76.5K $25.50/SF
− Vacancy
−$4.2K −$1.41/SF
EGI
$72.3K $24.09/SF
− OpEx
−$21.7K −$7.23/SF
NOI
$50.6K $16.87/SF
Area
King County, WA
Vacancy
5.51%
Lease Rate
$25.50 /SF/Yr
Expense Ratio
30.00%
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%
$1,011,980
Cap Rate 7%
$722,843
Cap Rate 9%
$562,211
Alternative Uses
Best Use
Multifamily LT 5
$722.8K
$632.5K – $843.3K
NOI $50,599 @ 7.0% cap · market cap 5.65%
Second Best
Apartment 5plus
$666.1K
$582.9K – $777.2K
NOI $46,629 @ 7.0% cap · market cap 5.21%
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $84,110 @ 7.0% cap · market cap 9.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
4
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,008
Businesses Nearby
Explore this area
Business Placement
Demographics for 98003, WA
51,751
Population
20,380
Households
2.5
Avg Household Size
37
Median Age
28%
College-Educated
88%
High-School Grad
11.5 sq mi
ZIP Area
4,500
Density / Sq Mi
$70,800
Median Household Income
$39,497
Median Earnings
$1,650
Median Rent
$428,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Quadplex - Four occupied one-bedroom homes each include a fireplace, in-unit laundry, and a private balcony or deck.
Where is this quadplex located?
The property is located at 34246 1st Pl S Federal Way, WA.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Four occupied units, each with 1 bedroom and 1 full bathroom; 3,000‑square‑foot building; Fireplace, in‑unit washer and dryer, and balcony or deck in every unit
