Renovated 10-Unit Apartment
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For Sale
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518 2nd Street, Kirkland, WA 98033
Corner apartment property with Lake Washington views and RS 5.0 zoning in Kirkland.
Property Size6,356 SF
Price / SF$511.17
Days on Market6
Property Features for 518 2nd Street
General Information
Standard status
Active
Size
6,356 SF
Total Parking Spaces
6
Property subtype
Retail, Multifamily
Zoning
RS 5.0
Occupancy
100%
Net Operating Income
$136,170
Additional Details
Multifamily Units
10
Building Details
Year Built
1901
Year Renovated
2015
Stories
2
Units
10
Tenancy
Single
Listing Agency:
CCM Commercial
Listed By:
Cal Mitchell · License #WA
Source:
Crexi
Added: Aug 29
Changed: Sep 1
Last Checked: Sep 1 at 9:33PM
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 CCM Commercial
Investment Insights
Based on property information with market context.
This 10-unit apartment property contains 6,356 square feet and was built in 1901. The complex has undergone renovation and occupies a corner site with territorial views as well as views toward Lake Washington. RS 5.0 zoning is identified for the property.
The property is located at 518 2nd Street in Kirkland, with access to nearby Lake Washington Marina Park, the Google Campus, Parkplace Center, Carillon Point, and downtown Kirkland retail and shopping. Its location also provides access for tenants commuting to Bellevue.
The property is located at 518 2nd Street in Kirkland, with access to nearby Lake Washington Marina Park, the Google Campus, Parkplace Center, Carillon Point, and downtown Kirkland retail and shopping. Its location also provides access for tenants commuting to Bellevue.
Key Highlights
- 10‑unit apartment complex with 6,356 SF
- Renovated apartment property originally built in 1901
- Corner location with territorial and Lake Washington views
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
$98,791
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
3.04%
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%
$1,975,820
$2.0M
Cap Rate 7%
$1,411,300
$1.4M
Cap Rate 9%
$1,097,678
$1.1M
Market Conditions
NOI Build-Up for 6,356 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
$190.7K $30.00/SF
− Vacancy
−$11.1K −$1.74/SF
EGI
$179.6K $28.26/SF
− OpEx
−$80.8K −$12.72/SF
NOI
$98.8K $15.54/SF
Area
King County, WA
Vacancy
5.80%
Lease Rate
$30.00 /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%
$1,975,820
Cap Rate 7%
$1,411,300
Cap Rate 9%
$1,097,678
Alternative Uses
Best Use
Apartment 5plus
$1.41M
$1.23M – $1.65M
NOI $98,791 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.55M
$2.23M – $2.97M
NOI $178,202 @ 7.0% cap · market cap 5.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Residential units
Location Intelligence
Trade Area within ½ mile
2,208
Businesses Nearby
Explore this area
Business Placement
Demographics for 98033, WA
41,763
Population
18,211
Households
2.3
Avg Household Size
39
Median Age
73%
College-Educated
98%
High-School Grad
9.2 sq mi
ZIP Area
4,539
Density / Sq Mi
$174,005
Median Household Income
$97,472
Median Earnings
$2,386
Median Rent
$1,259,900
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?
Apartment building - Corner apartment property with Lake Washington views and RS 5.0 zoning in Kirkland.
Where is this apartment building located?
The property is located at 518 2nd Street Kirkland, WA.
What is the asking price?
The asking price for this property is $3,249,000.
What are key features of this property?
This property features: 10‑unit apartment complex with 6,356 SF; Renovated apartment property originally built in 1901; Corner location with territorial and Lake Washington views
