Multifamily Opportunity on Pacific
For Sale
Contact for pricing
7603 Pacific Ave, Tacoma, WA 98408
Value-add multifamily property with renovation and lease-up potential.
Property Size14,063 SF
Lot Size0.81 Acres
Price / SF$213.33
Days on Market205
Property Features for 7603 Pacific Ave
General Information
Standard status
Active
Size
14,063 SF
Lot size
0.81 Acres
Property subtype
Multifamily
Zoning
Tacoma RCX
Investment Type
Value Add
Building Details
Year Built
1989
Year Renovated
2002
Buildings
3
Units
21
Listing Agency:
Engel & Volkers Seattle Downtown
(206) 623-9697
Listed By:
Robert Laing · License #WA 27769
Source:
Crexi
Added: Jan 27
Changed: Aug 15
Last Checked: Aug 19 at 6:21AM
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 Engel & Volkers Seattle Downtown
Investment Insights
Based on property information with market context.
This multifamily property presents a value-add opportunity, situated on a 0.809-acre parcel along the Pacific Avenue corridor. The property includes three buildings, comprising a total of 21 units with a mix of one- and two-bedroom layouts. There is a clear path for renovation completion and lease-up. The front buildings feature 12 one-bedroom units, with seven having been recently remodeled and the remaining units in various stages of renovation. A new roof has been installed on the south portion of these buildings. The third building, constructed in 1989, is a three-story structure containing nine spacious two-bedroom units. The property offers on-site laundry facilities and ample parking. Its location provides convenient access to retail options, public transit, and daily services. This property is suited for investors focused on completing renovations, stabilizing occupancy, and growing income over time. The total property size is 14063 square feet.
Key Highlights
- Value‑add opportunity with 21 units (mix of 1 and 2‑bedroom) for renovation and lease‑up.
- Nine spacious two‑bedroom units in a separate 3‑story building built in 1989, supporting long‑term tenant demand.
- Seven of the twelve one‑bedroom units in the front buildings have been recently remodeled.
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
$161,021
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
5.37%
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%
$3,220,420
$3.2M
Cap Rate 7%
$2,300,300
$2.3M
Cap Rate 9%
$1,789,122
$1.8M
Market Conditions
NOI Build-Up for 14,063 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
$308.8K $21.96/SF
− Vacancy
−$16.1K −$1.14/SF
EGI
$292.8K $20.82/SF
− OpEx
−$131.7K −$9.37/SF
NOI
$161.0K $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%
$3,220,420
Cap Rate 7%
$2,300,300
Cap Rate 9%
$1,789,122
Alternative Uses
Best Use
Apartment 5plus
$2.30M
$2.01M – $2.68M
NOI $161,021 @ 7.0% cap · market cap 5.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.32M
$3.78M – $5.04M
NOI $302,580 @ 7.0% cap · market cap 10.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
527
Businesses Nearby
Explore this area
Business Placement
Demographics for 98408, WA
20,566
Population
8,418
Households
2.4
Avg Household Size
38
Median Age
25%
College-Educated
90%
High-School Grad
3.4 sq mi
ZIP Area
6,049
Density / Sq Mi
$78,855
Median Household Income
$45,786
Median Earnings
$1,610
Median Rent
$379,400
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 - Value-add multifamily property with renovation and lease-up potential.
Where is this apartment building located?
The property is located at 7603 Pacific Ave Tacoma, WA.
What is the asking price?
The asking price for this property is $2,999,999.
What are key features of this property?
This property features: Value‑add opportunity with 21 units (mix of 1 and 2‑bedroom) for renovation and lease‑up.; Nine spacious two‑bedroom units in a separate 3‑story building built in 1989, supporting long‑term tenant demand.; Seven of the twelve one‑bedroom units in the front buildings have been recently remodeled.
