Redmond Development Site For
For Sale
$6,000,000
8520 164th Ave NE, Redmond, WA 98052
18,000 SF corner development site in the heart of Redmond.
Property Size18,000 SF
Price / SF$333.33
Days on Market552
Property Features for 8520 164th Ave NE
General Information
Standard status
Active
Size
18,000 SF
Property subtype
Commercial
Building Details
Year Built
1949
Listing Agency:
LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
(425) 417-5078
Listed By:
STUART WILLIAMS
Source:
Corcoran
Added: Feb 3, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:42AM
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 REAL ESTATE SERVICES
Investment Insights
Based on property information with market context.
The property is an 18,000 SF corner development site located in Redmond. The current zoning, Town Square (TSQ), offers developers an opportunity to build a roughly 130-unit multifamily project on a centrally located, flat site in Downtown Redmond. As part of the Redmond 2050 initiative, the city reduced the number of zoning districts from 50 to 18, with the Downtown Core zone encompassing areas previously designated as TSQ while allowing for the same base density. The location benefits from connectivity, including its proximity to the Redmond Transit Center (0.2 miles) and the Sound Transit East Link Light Rail station. These features, coupled with flexible development options, position the site as a unique value proposition.
Key Highlights
- Prime 18,000 SF corner development site in the heart of Redmond.
- Zoning allows for a roughly 130‑unit multifamily project.
- Centrally located, flat site in Downtown Redmond.
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
$279,774
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
4.66%
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%
$5,595,480
$5.6M
Cap Rate 7%
$3,996,771
$4.0M
Cap Rate 9%
$3,108,600
$3.1M
Market Conditions
NOI Build-Up for 18,000 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
$540.0K $30.00/SF
− Vacancy
−$31.3K −$1.74/SF
EGI
$508.7K $28.26/SF
− OpEx
−$228.9K −$12.72/SF
NOI
$279.8K $15.54/SF
Area
King County, WA
Vacancy
5.80%
Lease Rate
$30.00 /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%
$5,595,480
Cap Rate 7%
$3,996,771
Cap Rate 9%
$3,108,600
Alternative Uses
Best Use
Apartment 5plus
$4.00M
$3.50M – $4.66M
NOI $279,774 @ 7.0% cap · market cap 4.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.21M
$6.31M – $8.41M
NOI $504,662 @ 7.0% cap · market cap 8.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,968
Businesses Nearby
Explore this area
Business Placement
Demographics for 98052, WA
77,176
Population
34,946
Households
2.2
Avg Household Size
34
Median Age
75%
College-Educated
98%
High-School Grad
20.3 sq mi
ZIP Area
3,802
Density / Sq Mi
$164,848
Median Household Income
$106,078
Median Earnings
$2,339
Median Rent
$1,107,900
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?
Commercial land - 18,000 SF corner development site in the heart of Redmond.
Where is this commercial land located?
The property is located at 8520 164th Ave NE Redmond, WA.
What is the asking price?
The asking price for this property is $6,000,000.
What are key features of this property?
This property features: Prime 18,000 SF corner development site in the heart of Redmond.; Zoning allows for a roughly 130‑unit multifamily project.; Centrally located, flat site in Downtown Redmond.
