Brick 12-Unit Apartment
For Sale
$2,800,000
601 S Jackson Ave, Tacoma, WA 98465
1959-built brick apartment community with 12 units and a renovation-focused plan to improve in-place rents.
Property Size8,400 SF
Price / SF$333.33
Days on Market84
Property Features for 601 S Jackson Ave
General Information
Standard status
Active
Size
8,400 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
12
Building Details
Year Built
1955
Listing Agency:
Kidder Mathews
Listed By:
David A. Kelley
Source:
Montgomeryht
Added: Jun 17
Changed: Sep 8
Last Checked: Sep 8 at 5:08AM
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 Kidder Mathews
Investment Insights
Based on property information with market context.
Viewcrest Terrace Apartments is a 12-unit multifamily property built in 1959. Constructed with classic Tacoma brick, the building is described as meticulously maintained and in strong physical condition. The interior modernization plan is intended to focus on updated finishes, fixtures, and unit upgrades, with an emphasis on value creation without requiring significant structural or exterior capital investment.
The property is situated at 601 S Jackson Avenue in Tacoma, Washington, on a corner along Tacoma’s 6th Avenue corridor and S Jackson Avenue. The remarks note sweeping views of Puget Sound and the Narrows Bridge from one of the residence areas, adding to the property’s long-term residential positioning. The location is further characterized as being close to major employment centers, transit, and amenities.
For an owner seeking a long-term hold, the combination of durable brick construction and the current state of deferred maintenance supports a strategy centered on interior modernization. The offering also cites approximately $4,000 per month in unrealized rental upside based on the difference between current in-place rents and market rates. For operators and investors comfortable managing unit-turn and finish updates, the plan described here provides a clear pathway to pursuing rent premiums while keeping the work concentrated on interiors.
The property is situated at 601 S Jackson Avenue in Tacoma, Washington, on a corner along Tacoma’s 6th Avenue corridor and S Jackson Avenue. The remarks note sweeping views of Puget Sound and the Narrows Bridge from one of the residence areas, adding to the property’s long-term residential positioning. The location is further characterized as being close to major employment centers, transit, and amenities.
For an owner seeking a long-term hold, the combination of durable brick construction and the current state of deferred maintenance supports a strategy centered on interior modernization. The offering also cites approximately $4,000 per month in unrealized rental upside based on the difference between current in-place rents and market rates. For operators and investors comfortable managing unit-turn and finish updates, the plan described here provides a clear pathway to pursuing rent premiums while keeping the work concentrated on interiors.
Key Highlights
- 12‑unit multifamily community at 601 S Jackson Avenue in Tacoma, WA
- Brick apartment building with construction noted as Tacoma brick
- Located on the corner of 6th Avenue and S Jackson Avenue
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
$96,180
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
3.44%
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%
$1,923,600
$1.9M
Cap Rate 7%
$1,374,000
$1.4M
Cap Rate 9%
$1,068,667
$1.1M
Market Conditions
NOI Build-Up for 8,400 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
$184.5K $21.96/SF
− Vacancy
−$9.6K −$1.14/SF
EGI
$174.9K $20.82/SF
− OpEx
−$78.7K −$9.37/SF
NOI
$96.2K $11.45/SF
Area
Tacoma, WA
Vacancy
5.20%
Lease Rate
$21.96 /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%
$1,923,600
Cap Rate 7%
$1,374,000
Cap Rate 9%
$1,068,667
Alternative Uses
Best Use
Apartment 5plus
$1.37M
$1.20M – $1.60M
NOI $96,180 @ 7.0% cap · market cap 3.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.58M
$2.26M – $3.01M
NOI $180,734 @ 7.0% cap · market cap 6.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
179
Businesses Nearby
Explore this area
Business Placement
Demographics for 98465, WA
7,524
Population
3,771
Households
2
Avg Household Size
41
Median Age
38%
College-Educated
97%
High-School Grad
1.6 sq mi
ZIP Area
4,703
Density / Sq Mi
$77,083
Median Household Income
$54,829
Median Earnings
$1,453
Median Rent
$544,500
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 - 1959-built brick apartment community with 12 units and a renovation-focused plan to improve in-place rents.
Where is this apartment building located?
The property is located at 601 S Jackson Ave Tacoma, WA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 12‑unit multifamily community at 601 S Jackson Avenue in Tacoma, WA; Brick apartment building with construction noted as Tacoma brick; Located on the corner of 6th Avenue and S Jackson Avenue
