Building Details

Year Renovated 1971

Units 5

Listing Agency: Neil Walter Company

Listed By: Bruce Hemmat · License #WA 137503

Source: Crexi

Added: Oct 26, 2024 Changed: Aug 14 Last Checked: Aug 19 at 11:39PM

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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 Neil Walter Company

Investment Insights

Based on property information with market context.

This multi-tenant property in Maple Valley, WA, offers a value-add opportunity. The building has a total area of 8,320 square feet and is situated on a 1.26-acre lot with ample parking. The property is currently occupied by 4 tenants and includes retail, office, and industrial spaces. The industrial portion features 3 roll-up doors. An opportunity exists for either an investor or an owner/user, with up to 2,400 square feet of space available. The proforma cap rate is 6.5% (+).

Key Highlights

• Value‑add opportunity with multi‑tenant retail, office, and industrial spaces.
• Proforma 6.5% (+) cap rate.
• 8,320 total sf building on 1.26 acres with ample parking.

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

$138,990

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

6.62%

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%

$2,779,800 $2.8M

Cap Rate 7%

$1,985,571 $2.0M

Cap Rate 9%

$1,544,333 $1.5M

Market Conditions

NOI Build-Up for 8,320 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

$284.4K $34.18/SF

− Vacancy

−$62.0K −$7.45/SF

EGI

$222.4K $26.73/SF

− OpEx

−$83.4K −$10.02/SF

NOI

$139.0K $16.71/SF

Area

King County, WA

Vacancy

21.80%

Lease Rate

$34.18 /SF/Yr

Expense Ratio

37.50%

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%

$2,779,800

Cap Rate 7%

$1,985,571

Cap Rate 9%

$1,544,333

Alternative Uses

Best Use

Mixed Use

$1.99M

$1.74M – $2.32M (±1% cap)

NOI $138,990 @ 7.0% cap · market cap 6.62%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$3.33M

$2.92M – $3.89M (±1% cap)

NOI $233,266 @ 7.0% cap · market cap 11.11%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Mixed-use properties

Location Intelligence

Trade Area within ½ mile

40

Businesses Nearby

Explore this area Business Placement

Demographics for 98038, WA

37,487

Population

13,157

Households

2.8

Avg Household Size

38

Median Age

46%

College-Educated

97%

High-School Grad

65.8 sq mi

ZIP Area

570

Density / Sq Mi

$144,733

Median Household Income

$73,422

Median Earnings

$2,152

Median Rent

$714,100

Median Home Value

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Multi-tenant retail, office, and industrial property in Maple Valley.

Where is this mixed-use property located?

The property is located at 21505 Renton-Maple Vly Rd Maple Valley, WA.

What is the asking price?

The asking price for this property is $2,100,000.

What are key features of this property?

This property features: Value‑add opportunity with multi‑tenant retail, office, and industrial spaces.; Proforma 6.5% (+) cap rate.; 8,320 total sf building on 1.26 acres with ample parking.