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Multifamily

Wilmont Apartments

1402 Earnest S Brazill St, Tacoma, WA 98405

Listing Price: $2,350,000

Cap Rate
5.19%
Number of Units
11
Occupancy
82.0%
Price/Unit
$213,636
Price/Gross SF
$358.78
Gross SF
6,550

Investment Overview

The Wilmont Apartments is located in the Hilltop neighborhood of Tacoma, WA. Located just south of the Stadium District, which is one of the most expensive neighborhoods in Tacoma, and west of Downtown Tacoma, Hilltop has seen some of the most significant gentrification in the greater area during this past decade. As rents continue to rise in Stadium District and new construction continues to push rents in Downtown, the owner of the Wilmont will continue to benefit from this progression of progress. Furthermore, the City of Tacoma has infused a large amount of capital into the infrastructure of the area through the expansion of the Tacoma Light Rail by adding the Hilltop station near the corner of M.L.K. Jr Way and S 11th St, which is located just a few blocks from Wilmont. The station, which is scheduled to be operational in 2023, will allow an ease of access to employment centers of two major hospitals, as well as all of Downtown Tacoma. The city is also expending the Light Rail track on the east side of Tacoma to connect to the King County Light Rail system, which in 2030 will provide transportation into Downtown Seattle and beyond. Over the past decade there has been a large migration of Seattle residents that have transported to Tacoma in search of lower living costs for a higher quality of life. Once the two Light Rail systems are connected, it is anticipated that this migration will significantly increase, which will no doubt have a size-able positive impact on the market rents in the area. The Wilmont Apartments offers an investor the opportunity to ac-quire a well-maintained asset that has received substantial renovations over the last several years, but still offers significant upside in both operations and light physical value add components. The current ownership has fully renovated all common areas as well as the interiors of 10 of the 11 units. During those renovations they were also able to considerably in-crease the income of the property by converting 7 of the previous 1BD units to 2BD units, and by doing so, they were able to obtain additional rents of $100/unit/month. There are still 2 1BD units that have the exact same floor plans as the previously converted units, which creates the opportunity for a new owner to perform the same scope of work and generate additional revenue. Once a new investor finishes the conversions as well as a light renovation of the 1 remaining unrenovated unit, they will benefit from the chance to raise all rents to market by an estimated $96/unit, achieving a pro forma cap rate of 5.54%. Furthermore, there is an opportunity for a new investor to add an additional unit at the property. Currently there is a large storage room that is connected to the on-site laundry room, which already includes a bathroom. That space could be easily converted to an additional 1BD unit, which is estimated to generate an additional $1,315/month in rent. Along with the potential to add an additional unit in the existing structure, there is also future development potential that could be undertaken where the parking and community garden are currently located, which dimensions are estimated at 55x45 feet (Buyer to verify).

Investment Highlights

  • Opportunity to Add 1 New Unit
  • Light Rail on MLK Expected by 2023
  • Substantially Renovated Asset

Exclusively Listed By

  • Kellan Moll

    First Vice President Investments

    Email Kellan

    License(s): WA: 111361

    Seattle

  • Scott Morasch

    Senior Vice President Investments

    (206) 826-5724

    Email Scott

    License(s): WA: 4731

    Seattle

Multifamily

Wilmont Apartments

Listing Price: $2,350,000

Cap Rate
5.19%
Number of Units
11
Occupancy
82.0%
Price/Unit
$213,636
Price/Gross SF
$358.78
Gross SF
6,550

Investment Highlights

  • Opportunity to Add 1 New Unit
  • Light Rail on MLK Expected by 2023
  • Substantially Renovated Asset

Investment Overview

The Wilmont Apartments is located in the Hilltop neighborhood of Tacoma, WA. Located just south of the Stadium District, which is one of the most expensive neighborhoods in Tacoma, and west of Downtown Tacoma, Hilltop has seen some of the most significant gentrification in the greater area during this past decade. As rents continue to rise in Stadium District and new construction continues to push rents in Downtown, the owner of the Wilmont will continue to benefit from this progression of progress. Furthermore, the City of Tacoma has infused a large amount of capital into the infrastructure of the area through the expansion of the Tacoma Light Rail by adding the Hilltop station near the corner of M.L.K. Jr Way and S 11th St, which is located just a few blocks from Wilmont. The station, which is scheduled to be operational in 2023, will allow an ease of access to employment centers of two major hospitals, as well as all of Downtown Tacoma. The city is also expending the Light Rail track on the east side of Tacoma to connect to the King County Light Rail system, which in 2030 will provide transportation into Downtown Seattle and beyond. Over the past decade there has been a large migration of Seattle residents that have transported to Tacoma in search of lower living costs for a higher quality of life. Once the two Light Rail systems are connected, it is anticipated that this migration will significantly increase, which will no doubt have a size-able positive impact on the market rents in the area. The Wilmont Apartments offers an investor the opportunity to ac-quire a well-maintained asset that has received substantial renovations over the last several years, but still offers significant upside in both operations and light physical value add components. The current ownership has fully renovated all common areas as well as the interiors of 10 of the 11 units. During those renovations they were also able to considerably in-crease the income of the property by converting 7 of the previous 1BD units to 2BD units, and by doing so, they were able to obtain additional rents of $100/unit/month. There are still 2 1BD units that have the exact same floor plans as the previously converted units, which creates the opportunity for a new owner to perform the same scope of work and generate additional revenue. Once a new investor finishes the conversions as well as a light renovation of the 1 remaining unrenovated unit, they will benefit from the chance to raise all rents to market by an estimated $96/unit, achieving a pro forma cap rate of 5.54%. Furthermore, there is an opportunity for a new investor to add an additional unit at the property. Currently there is a large storage room that is connected to the on-site laundry room, which already includes a bathroom. That space could be easily converted to an additional 1BD unit, which is estimated to generate an additional $1,315/month in rent. Along with the potential to add an additional unit in the existing structure, there is also future development potential that could be undertaken where the parking and community garden are currently located, which dimensions are estimated at 55x45 feet (Buyer to verify).

Exclusively Listed By

  • Kellan Moll

    First Vice President Investments

    Email Kellan

    License(s): WA: 111361

    Seattle

  • Scott Morasch

    Senior Vice President Investments

    (206) 826-5724

    Email Scott

    License(s): WA: 4731

    Seattle

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