Renovated Five-Unit Apartment
New
For Sale
$1,250,000
408 2ND, Puyallup, WA 98371
Updated residences with on-site laundry and covered parking near the Puyallup Sounder Station.
Property Size3,986 SF
Lot Size0.33 Acres
Price / SF$313.60
Days on Market5
Property Features for 408 2ND
General Information
Standard status
Active
Size
3,986 SF
Total Parking Spaces
11
Lot size
0.33 Acres
Property subtype
Multi-family
Units
Unit Mix
5 x 2BR/1BA
Multifamily Units
5
Additional Details
Public Transit
Yes
Amenities
on-site coin-operated laundry
Building Details
Year Built
1976
Buildings
1
Listing Agency:
Windermere Real Estate/PSK Inc
Listed By:
Tyler Freed
(253) 604-6000
Source:
Skylineproperties
Added: Sep 8
Changed: Sep 11
Last Checked: Sep 11 at 10:36AM
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 Windermere Real Estate/PSK Inc
Investment Insights
Based on property information with market context.
This 3,986-square-foot apartment property contains five residences, each offering two bedrooms and one bathroom across approximately 775 square feet. The interiors have been remodeled, while building improvements include a roof installed in 2025, upgraded electrical breaker panels, and triple-pane vinyl windows. An on-site coin-operated laundry facility adds a separate revenue component.
The property occupies a 14,400-square-foot corner lot in Downtown Puyallup, within blocks of the Puyallup Sounder Station. Parking includes eight covered carport spaces and three additional spaces. Downtown dining, shopping, and other amenities are located nearby.
The property occupies a 14,400-square-foot corner lot in Downtown Puyallup, within blocks of the Puyallup Sounder Station. Parking includes eight covered carport spaces and three additional spaces. Downtown dining, shopping, and other amenities are located nearby.
Key Highlights
- Five 2‑bedroom, 1‑bath residences of approximately 775 square feet each
- 3,986‑square‑foot apartment property on a 14,400‑square‑foot corner lot
- New roof installed in 2025
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
$48,234
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
3.86%
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%
$964,680
$964.7K
Cap Rate 7%
$689,057
$689.1K
Cap Rate 9%
$535,933
$535.9K
Market Conditions
NOI Build-Up for 3,986 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
$94.7K $23.76/SF
− Vacancy
−$7.0K −$1.76/SF
EGI
$87.7K $22.00/SF
− OpEx
−$39.5K −$9.90/SF
NOI
$48.2K $12.10/SF
Area
Pierce County, WA
Vacancy
7.40%
Lease Rate
$23.76 /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%
$964,680
Cap Rate 7%
$689,057
Cap Rate 9%
$535,933
Alternative Uses
Best Use
Apartment 5plus
$689.1K
$602.9K – $803.9K
NOI $48,234 @ 7.0% cap · market cap 3.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.08M
$942.0K – $1.26M
NOI $75,360 @ 7.0% cap · market cap 6.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
1,469
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - Updated residences with on-site laundry and covered parking near the Puyallup Sounder Station.
Where is this apartment building located?
The property is located at 408 2ND Puyallup, WA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Five 2‑bedroom, 1‑bath residences of approximately 775 square feet each; 3,986‑square‑foot apartment property on a 14,400‑square‑foot corner lot; New roof installed in 2025
