Vacant 10-Unit Apartment
For Sale
$1,995,000
739 3RD, Kent, WA 98032
10-unit apartment building offered vacant at close near Kent Station and SR-516.
Property Size7,808 SF
Price / SF$255.51
Days on Market315
Property Features for 739 3RD
General Information
Standard status
Active
Size
7,808 SF
Property subtype
Multi-family
Additional Details
Highway Access
Yes
Multifamily Units
10
Building Details
Year Built
1969
Listing Agency:
Lee & Associates Commercial RE
Listed By:
Sara Bago
(206) 267-1457
Source:
Skylineproperties
Added: Oct 29, 2025
Changed: Sep 8
Last Checked: Sep 7 at 2:26PM
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 Lee & Associates Commercial RE
Investment Insights
Based on property information with market context.
Watson Manor Apartments is a 10-unit apartment building being offered for sale as a 100% vacant asset, with delivery vacant at close. The property is positioned for an owner to implement their plan immediately after acquisition.
The building is located in the heart of Kent, just south of Kent Station and minutes from SR-516, providing convenient access to major employment centers throughout the region. The offering materials note the asset’s configuration includes a laundry area, and potential exists to convert that laundry space into an additional unit and to redesign select layouts to create larger units.
The building is located in the heart of Kent, just south of Kent Station and minutes from SR-516, providing convenient access to major employment centers throughout the region. The offering materials note the asset’s configuration includes a laundry area, and potential exists to convert that laundry space into an additional unit and to redesign select layouts to create larger units.
Key Highlights
- 10‑unit apartment building to be delivered 100% vacant at close
- Located in Kent, just south of Kent Station with quick access to SR‑516
- 2‑story building with 7,808 total building area and 1969 construction
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
$135,323
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
6.78%
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%
$2,706,460
$2.7M
Cap Rate 7%
$1,933,186
$1.9M
Cap Rate 9%
$1,503,589
$1.5M
Market Conditions
NOI Build-Up for 7,808 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
$259.5K $33.24/SF
− Vacancy
−$13.5K −$1.73/SF
EGI
$246.0K $31.51/SF
− OpEx
−$110.7K −$14.18/SF
NOI
$135.3K $17.33/SF
Area
Kent, WA
Vacancy
5.20%
Lease Rate
$33.24 /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%
$2,706,460
Cap Rate 7%
$1,933,186
Cap Rate 9%
$1,503,589
Alternative Uses
Best Use
Apartment 5plus
$1.93M
$1.69M – $2.26M
NOI $135,323 @ 7.0% cap · market cap 6.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.93M
$2.56M – $3.41M
NOI $204,822 @ 7.0% cap · market cap 10.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,675
Businesses Nearby
Explore this area
Business Placement
Demographics for 98032, WA
38,744
Population
15,639
Households
2.5
Avg Household Size
35
Median Age
28%
College-Educated
84%
High-School Grad
17.0 sq mi
ZIP Area
2,279
Density / Sq Mi
$77,413
Median Household Income
$46,105
Median Earnings
$1,782
Median Rent
$473,000
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 - 10-unit apartment building offered vacant at close near Kent Station and SR-516.
Where is this apartment building located?
The property is located at 739 3RD Kent, WA.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: 10‑unit apartment building to be delivered 100% vacant at close; Located in Kent, just south of Kent Station with quick access to SR‑516; 2‑story building with 7,808 total building area and 1969 construction
