Building Details

Year Built 1965

Listing Agency: Compass

Listed By: Chris Murphy · License #111144 Show Phone

Source: Pugetsoundrealestate

Added: Sep 13 Last Checked: Sep 13 at 3:01PM

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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 Compass

Investment Insights

Based on property information with market context.

This single-level duplex at 515 Roe St includes 1,664 total square feet arranged as two separate residences. Each unit offers approximately 832 square feet with two bedrooms, one bathroom, its own entrance, and a fenced outdoor area. Updated living spaces, covered parking, and landscaped grounds support straightforward residential operation. The property was built in 1965.

The duplex sits on a corner lot in Steilacoom, near downtown, schools, parks, and local amenities. Its location also provides access to JBLM, Lakewood, and major employment centers. One unit is vacant for scheduled showings, while the occupied unit is available for viewing following mutual acceptance. The adjacent duplex at 2707 Lexington is also available, creating a potential four-unit acquisition package.

Key Highlights

• Two‑unit duplex with 1,664 total square feet
• Each residence includes 2 beds, 1 bath, and approximately 832 sq ft
• Separate entrances and fenced outdoor areas for both units

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

$21,832

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

3.98%

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%

$436,640 $436.6K

Cap Rate 7%

$311,886 $311.9K

Cap Rate 9%

$242,578 $242.6K

Market Conditions

NOI Build-Up for 1,664 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

$33.5K $20.16/SF

− Vacancy

−$2.4K −$1.42/SF

EGI

$31.2K $18.74/SF

− OpEx

−$9.4K −$5.62/SF

NOI

$21.8K $13.12/SF

Area

Pierce County, WA

Vacancy

7.03%

Lease Rate

$20.16 /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%

$436,640

Cap Rate 7%

$311,886

Cap Rate 9%

$242,578

Alternative Uses

Best Use

Multifamily LT 5

$311.9K

$272.9K – $363.9K (±1% cap)

NOI $21,832 @ 7.0% cap · market cap 3.98%

Second Best

Apartment 5plus

$287.7K

$251.7K – $335.6K (±1% cap)

NOI $20,136 @ 7.0% cap · market cap 3.67%

Theoretical Best

Office A

$449.4K

$393.3K – $524.3K (±1% cap)

NOI $31,460 @ 7.0% cap · market cap 5.73%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Duplexes

Suggested Use

Top Pick Law Firm Hair Salon Dental Office Restaurant Parking Lot & Garage Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

141

Businesses Nearby

Explore this area Business Placement

Demographics for 98388, WA

7,096

Population

2,846

Households

2.5

Avg Household Size

41

Median Age

45%

College-Educated

93%

High-School Grad

8.8 sq mi

ZIP Area

806

Density / Sq Mi

$97,634

Median Household Income

$49,382

Median Earnings

$1,721

Median Rent

$594,600

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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What type of property is this? Where is this duplexes located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Duplex - Two updated residences provide separate entrances, fenced outdoor areas, and covered parking.

Where is this duplex located?

The property is located at 515 Roe St Steilacoom, WA.

What is the asking price?

The asking price for this property is $549,000.

What are key features of this property?

This property features: Two‑unit duplex with 1,664 total square feet; Each residence includes 2 beds, 1 bath, and approximately 832 sq ft; Separate entrances and fenced outdoor areas for both units