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This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.
Exclusive Multifamily Offering
WASHINGTON TERRACE APARTMENTS7920 Washington Blvd SW, Lakewood, WA
$1,354,900 | 12 units
Contact
kiddermathews.com
Dan SwansonKidder Mathews Senior Vice President, Partner [email protected]
Donna MarshallCapstone Real Estate Group Vice President, Investment Sales [email protected]
Strategically located in Lakewood’s Gravelly Lake neighborhood 1/2 mile from I-5, 1 mile from Lakewood Town Center, a 15-minute drive to Downtown Tacoma, and approximately halfway between Olympia and Seattle
Immediate rental upside by raising rents to market rates upon turnover
Pitched composition roofs, dual-pane vinyl windows, ample storage, and attractive low-maintenance landscaping
Mostly two-bedroom units with individual entrances and private decks or patios
12 carport parking spaces and additional off-street parking
Major employers in the area include JBLM, Madigan Army Hospital, Clover Park School District, St. Clare Hospital, McLane Northwest, Aacres, and the Cities of Lakewood and Tacoma
Centrally positioned between Pierce College (2.9 miles) and Pierce College Fort Steilacoom (3.3 miles); the school employs more than 1,130 and has an enrollment of 20,030
Lakewood’s rental rates have increased 22% in the last 3 years
WASHINGTON TERRACE APTS
Tacoma
Lakewood
DuPont
PUGET SOUND
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.
kiddermathews.com
Washington Terrace Apartments
Washington Terrace in Lakewood’s Gravelly Lake Neighborhood is strategically located approximately one and a half miles from Interstate 5, and less than a 15-minute drive to the Tacoma Central Business District. The property is also situated less than half a mile away from Gravelly Lake and the affluent homes surrounding its shores. Washington Terrace is also conveniently located within two miles of 15 groceries and markets – including a major Safeway – and more than 20 restaurants and coffee shops. Within five miles there are several entertainment venues, including three cinemas, a live theatre, and a variety of museums and cultural centers. Lakewold Gardens, a 10-acre public garden and estate just seven minutes away by foot, offers residents the opportunity to stroll among this National Historic Landmark’s rare and native plants, Japanese maples, State Champion Trees, and more than 900 rhododendrons. Major employers such as Joint Base Lewis-McChord and Lakewood Industrial Park, with its 2.4 million square feet of manufacturing, warehouse, and distribution facilities, are just two and a half miles away. With a short commute to both Tacoma and Olympia, and with the Sounder Train station located just three miles away, the Washington Terrace appeals to a variety of residents who work throughout the region.
Washington Terrace is comprised of two 650 square foot one-bedroom / one-bathroom units, eight two-bedroom / one-bathroom units that range in size from 930 to 1,065 square feet, and two 1,130 square foot two-bedroom / 1.75 bathroom units. All 12 apartments have their own individual entrances, ample closet space, and private patios or decks. The property features 12 carports, numerous off-street parking spaces, 12 storage lockers, dual-pane vinyl windows, and pitched composition roofs.
This offering presents an excellent opportunity to purchase a multifamily investment with significant rental upside, which will be easily achieved upon turnover. Further, over the past 3 years, Lakewood’s rental rents have increased more than 20%. This general trajectory is likely to continue as the region sees a dramatic influx of new residents and as King County’s rental rates continue to escalate,
outpacing the income gains of many of King County’s renters. This trend shows no signs of slowing, and should continue to push many King County renters south and will lift the Washington Terrace’s market rates to new heights.
Property Overview
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.
kiddermathews.com
PROPERTY OVERVIEW
Address 7920 Washington Blvd SW
Price $1,354,900
Down Payment $459,900
Price per Unit $112,908
Price per SF $120.22
Current Cap Rate 4.6%
Pro Forma Cap Rate 6.2%
Current GRM 10.1
Pro Forma GRM 8.5
# of Units 12
Avg Unit Size 939 SF
Net Rentable SF 11,270 SF
Lot Size 34,413 SF (0.79 acres)
Effective Year Built 1990
Type of Ownership Fee Simple
APN021910-3057, 021910-3061,
021910-3064
Zoning MR2
CURRENT PRO FORMA
INCOME
Total Scheduled Rent $120,120 $144,240
Other Income $13,725 $14,445
Scheduled Potential Income $133,845 $158,685
Less Physical Vacancy (5.0%) ($6,692) ($7,934)
EXPENSES
Real Estate Taxes $15,934 $16,743
Insurance $1,785 $1,785
Utilities $20,040 $20,040
Repairs and Maintenance $10,200 $10,200
Professional Management $6,358 $7,538
Capital Reserves $3,000 $3,000
Landscaping $4,279 $4,279
Administrative $2,643 $2,643
Total Expenses ($64,238) ($66,226)
Expenses Per Unit $5,353 $5,519
Expenses Per Square Foot $5.70 $5.88
Net Operating Income $62,915 $84,525
UNIT MIX
# UNIT TYPE AVG SFCURRENT
AVERAGE RENT CURRENT
RENT PER SFPRO FORMA
AVG RENTPRO FORMA RENT PER SF
2 1 BR / 1 BA 650 $675 $1.04 $825 $1.27
8 2 BR / 1 BA 964 $859 $0.89 $1,009 $1.05
2 2 BR / 1.75 BA 1,130 $893 $0.79 $1,150 $1.02
TOTAL 11,270 $10,010 $12,020
AVERAGE 939 $834 $0.89 $1,002 $1.07
Washington Terrace Apartments
Financials & Overview
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.
kiddermathews.com
Lakewood
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WASHINGTON TERRACE
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64th St W
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Sales Comparables
WASHINGTON TERRACE7920 Washington Blvd SW, Lakewood
Date Sold TBDList Price $1,354,900Price/Unit $112,908Price/SF $120.22Cap Rate 4.6% (6.2%*)GRM 10.1 (8.5*)Units 12Effective Year Built 1967
SUBJECT
LAKEWOOD DUPLEXES6422 Ardmore Dr SW, Lakewood
Date Sold PendingSale Price $1,100,000Price/Unit $137,500Price/SF $134.84Cap Rate 4.7%GRM 12.0Units 8Year Built 1962
4
WHISPERING PINES7715 Douglas St W, Lakewood
Date Sold 08/28/2017Sale Price $1,950,000Price/Unit $114,706Price/SF $140.51Cap Rate 5.3%GRM 10.0Units 17Year Built 1986
3
1 TEN UNIT11424 Farwest Dr SW, Lakewood
Date Sold 10/06/2017Sale Price $1,285,000Price/Unit $128,500Price/SF $147.19Cap Rate 6.0%GRM 16.8Units 10Year Built 1969
LAKEWOOD DUPLEXES6111 88th St SW, Lakewood
Date Sold 04/27/2017Sale Price $1,670,000Price/Unit $119,286Price/SF $140.34Cap Rate 5.8%GRM 10.0Units 14Year Built 1971
2
*Market Cap Rate and GRM
Washington Terrace Apartments
