Building Details

Year Built 2008

Year Renovated 2021

Buildings 3

Stories 1

Units 6

Listing Agency: Coldwell Banker Danforth h***@yahoo.com Show Phone

Listed By: Heidi Bright · License #WA

Source: Crexi

Added: Mar 4 Changed: Aug 17 Last Checked: Aug 19 at 12:44PM

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Investment Insights

Based on property information with market context.

This multifamily property contains remodeled units and is located approximately seven blocks from the beach. The property has a size of 5312 square feet.

Key Highlights

• 7 Blocks to the Beach
• Remodeled
• High Demand 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

$64,280

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

3.43%

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%

$1,285,600 $1.3M

Cap Rate 7%

$918,286 $918.3K

Cap Rate 9%

$714,222 $714.2K

Market Conditions

NOI Build-Up for 5,312 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

$126.2K $23.76/SF

− Vacancy

−$9.3K −$1.76/SF

EGI

$116.9K $22.00/SF

− OpEx

−$52.6K −$9.90/SF

NOI

$64.3K $12.10/SF

Area

Pierce County, WA

Vacancy

7.40%

Lease Rate

$23.76 /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%

$1,285,600

Cap Rate 7%

$918,286

Cap Rate 9%

$714,222

Alternative Uses

Best Use

Apartment 5plus

$918.3K

$803.5K – $1.07M (±1% cap)

NOI $64,280 @ 7.0% cap · market cap 3.43%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.43M

$1.26M – $1.67M (±1% cap)

NOI $100,430 @ 7.0% cap · market cap 5.36%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Multifamily properties

Suggested Use

Top Pick Dental Office Law Firm Hair Salon Building Supply Big Box & Wholesale Store Spa & Massage Center

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

134

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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Frequently Asked Questions

What type of property is this?

Multifamily property - Multifamily property featuring remodeled units, located near the beach.

Where is this multifamily property located?

The property is located at 814 5th St Steilacoom, WA.

What is the asking price?

The asking price for this property is $1,875,000.

What are key features of this property?

This property features: 7 Blocks to the Beach; Remodeled; High Demand Units