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Multifamily

Legacy Ridge

901 E 72nd St, Tacoma, WA 98404

Listing Price: $9,500,000

Cap Rate
5.65%
Number of Units
40
Occupancy
96.0%
Price/Unit
$237,500
Price/Gross SF
$295.91
Gross SF
32,104

Investment Overview

Legacy Ridge offers prospective investors an enticing opportunity to acquire a high-yielding, new construction asset that has recently undergone significant capital improvements to capture top-quality tenants and rent levels. Legacy Ridge is uniquely positioned between the private capital and institutional investment spaces, with the scale and income to support full time professional management while delivering notably above market cash on cash returns. The current ownership has strategically implemented an interior renovation program over the past 2 years, with the initial renovated units discovering the previously untapped submarket demand for premium product. Substantially accelerated submarket rent growth over the same period has allowed lower quality product to command similar rent levels, alluding to further organic upside for renovated units. Operational efficiencies through highly effective professional management have further maximized the return potential that a new owner could capture organically within 1-2 years of acquisition. One such efficiency implemented was the inclusion of annual memberships to Planet Fitness (next door to the property), which gives tenants a vastly superior Fitness Center to what market comps can offer, while feeling effectively on-site. In addition to offering an approximately 7% cash on cash return with new interest-only financing from Day 1, there is an additional $100K per year in rental income upside through recapturing loss to lease, based on the latest lease rents achieved. Further potential upside would likely come organically, with the South Tacoma submarket demonstrating 9.6% annual average rent growth over the trailing 5-years, and 11.99% since 2021.

Investment Highlights

  • Desirable new construction with majority of unit interiors renovated to true Class B finishes by current ownership.
  • Offered free and clear of existing debt with opportunity for sizeable cash on cash returns through new interest-only financing.
  • Proven rental upside across the Rent Roll with further support from annual average submarket rent growth of 9.4% over trailing 5 years, and 11.99% since Q3 2021.

Exclusively Listed By

Financing By

Multifamily

Legacy Ridge

Listing Price: $9,500,000

Cap Rate
5.65%
Number of Units
40
Occupancy
96.0%
Price/Unit
$237,500
Price/Gross SF
$295.91
Gross SF
32,104

Investment Highlights

  • Desirable new construction with majority of unit interiors renovated to true Class B finishes by current ownership.
  • Offered free and clear of existing debt with opportunity for sizeable cash on cash returns through new interest-only financing.
  • Proven rental upside across the Rent Roll with further support from annual average submarket rent growth of 9.4% over trailing 5 years, and 11.99% since Q3 2021.

Investment Overview

Legacy Ridge offers prospective investors an enticing opportunity to acquire a high-yielding, new construction asset that has recently undergone significant capital improvements to capture top-quality tenants and rent levels. Legacy Ridge is uniquely positioned between the private capital and institutional investment spaces, with the scale and income to support full time professional management while delivering notably above market cash on cash returns. The current ownership has strategically implemented an interior renovation program over the past 2 years, with the initial renovated units discovering the previously untapped submarket demand for premium product. Substantially accelerated submarket rent growth over the same period has allowed lower quality product to command similar rent levels, alluding to further organic upside for renovated units. Operational efficiencies through highly effective professional management have further maximized the return potential that a new owner could capture organically within 1-2 years of acquisition. One such efficiency implemented was the inclusion of annual memberships to Planet Fitness (next door to the property), which gives tenants a vastly superior Fitness Center to what market comps can offer, while feeling effectively on-site. In addition to offering an approximately 7% cash on cash return with new interest-only financing from Day 1, there is an additional $100K per year in rental income upside through recapturing loss to lease, based on the latest lease rents achieved. Further potential upside would likely come organically, with the South Tacoma submarket demonstrating 9.6% annual average rent growth over the trailing 5-years, and 11.99% since 2021.

Exclusively Listed By

Financing By

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