4040 8Th Ave Seattle, WA 98105

Property Details for 4040 8Th Ave

Year built

1967

Property type

Commercial real estate

APN

409230-1595

Description

This exceptional 18-unit apartment building, located at 4040 8th Ave NE in Seattle's vibrant University District (zip code 98105), presents a compelling value-add investment opportunity. Built in 1967, the three-story building boasts 11,304 square feet of net rentable space, encompassing 18 one-bedroom, one-bathroom units, each measuring 628 square feet. The property sits on a 7,125 square foot lot and features wood frame construction, a composite roof, electric heating, and copper electrical. Currently generating a NOI of $180,323 and a 5.46% cap rate, a pro-forma NOI of $257,037 and a 7.11% pro-forma cap rate are projected. This is achievable through a value-add program capitalizing on the current 14% below-market rents. Unit upgrades and amenity enhancements could yield an additional 14% rent premium per unit above market rates. The property's strategic location, just 1.1 miles from the University of Washington and a short distance from the U-District light rail station, ensures high occupancy and strong rental demand. Further enhancing income potential, an adjacent parking lot provides 30 surface parking spots, currently leased at $100 per month to tenants and the public. The asking price is $3,300,000, representing a price per square foot of $307 and a price per unit of $183,333. The land value is $463 per square foot. The property is zoned MR (M1). This presents a rare chance to acquire a well-situated asset in a rapidly growing area with significant upside potential.