Sunset Hill Multifamily Investment
For Sale
$2,850,000
Pending
8500 32nd Ave NW, Seattle, WA 98117
Well-maintained multifamily property in Seattle's desirable Sunset Hill neighborhood.
Property Size9,720 SF
Days on Market409
Property Features for 8500 32nd Ave NW
General Information
Standard status
Pending
Size
9,720 SF
Property subtype
Commercial
Building Details
Year Built
1957
Listing Agency:
MARCUS & MILLICHAP, INC.
Listed By:
RYAN DINIUS
Source:
Corcoran
Added: Jul 8, 2025
Changed: Jul 6
Last Checked: Jul 23 at 6:54AM
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 MARCUS & MILLICHAP, INC.
Investment Insights
Based on property information with market context.
Sunset Plaza is located in the charming Sunset Hill neighborhood, known for its views of the Puget Sound and Olympic Mountains. Originally constructed in 1957, Sunset Plaza has been carefully and well maintained and presents investors an opportunity to further enhance the community. The property is comprised of seven 779 square foot two-bedroom one-bath units, two 1,070 square foot two-bedroom one-bath units, and one 2,130 square foot three-bedroom two-and-a-half-bath unit. The property offers a great range of living spaces that have strong historical occupancy. Sunset Hill is a quiet, residential pocket nestled within the larger Ballard neighborhood of Seattle, known for its stunning views of Puget Sound, the Olympic Mountains, and breathtaking sunsets that give the area its name. Characterized by tree-lined streets, charming single-family homes, and a strong sense of community, Sunset Hill provides a peaceful and family-friendly atmosphere.
Key Highlights
- Located in Sunset Hill, known for Puget Sound and Olympic Mountain views.
- Strong historical occupancy.
- Offers a range of unit sizes: two‑bedroom and three‑bedroom options.
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
$164,053
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
5.76%
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%
$3,281,060
$3.3M
Cap Rate 7%
$2,343,614
$2.3M
Cap Rate 9%
$1,822,811
$1.8M
Market Conditions
NOI Build-Up for 9,720 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
$309.1K $31.80/SF
− Vacancy
−$10.8K −$1.11/SF
EGI
$298.3K $30.69/SF
− OpEx
−$134.2K −$13.81/SF
NOI
$164.1K $16.88/SF
Area
Seattle, WA
Vacancy
3.50%
Lease Rate
$31.80 /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%
$3,281,060
Cap Rate 7%
$2,343,614
Cap Rate 9%
$1,822,811
Alternative Uses
Best Use
Apartment 5plus
$2.34M
$2.05M – $2.73M
NOI $164,053 @ 7.0% cap · market cap 5.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.92M
$2.56M – $3.41M
NOI $204,700 @ 7.0% cap · market cap 7.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
382
Businesses Nearby
Explore this area
Business Placement
Demographics for 98117, WA
35,608
Population
15,230
Households
2.3
Avg Household Size
39
Median Age
75%
College-Educated
98%
High-School Grad
3.9 sq mi
ZIP Area
9,130
Density / Sq Mi
$182,500
Median Household Income
$95,616
Median Earnings
$2,197
Median Rent
$1,028,100
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Well-maintained multifamily property in Seattle's desirable Sunset Hill neighborhood.
Where is this apartment building located?
The property is located at 8500 32nd Ave NW Seattle, WA.
What is the asking price?
The asking price for this property is $2,850,000.
What are key features of this property?
This property features: Located in Sunset Hill, known for Puget Sound and Olympic Mountain views.; Strong historical occupancy.; Offers a range of unit sizes: **two‑bedroom and three‑bedroom options**.
