Investment Overview

The Madrona Apartments, a vibrant and thriving apartment community nestled in the heart of South End Tacoma, has a rich history dating back to 1957. With three different buildings totaling 21 units on the property, nine of the units were added to the property in 1989. This gives the property a diverse unit mix that offers modern conveniences and enhances the overall living experience. With the submarket experiencing a steady increase in demand, it’s clear that the Madrona Apartments central location plays a key role in its popularity. The community is conveniently situated in close proximity to Downtown Tacoma, Government Employment, and other major employers in the area. Featuring eleven charming one-bedroom/one-bathroom units, each spanning approximately ± 570 square feet, and a spacious two-bedroom/one-bathroom units measuring ± 800 square feet, the Madrona Apartments offer a comfortable and inviting living space for its residents. Each unit boasts a roomy living and dining area, along with an oven/range and refrigerator for added convenience. All nine of the two-bedroom units built in 1989 also have an in-unit washer and dryer. Madrona Apartments presents an outstanding value-add investment opportunity for those seeking a multifamily building with strong appeal. At a purchase price of $3,195,000, the Madrona Apartments offer a lucrative income stream, and an astute investor can take advantage of the significant rental upside potential by completing the interior renovations, stabilizing the property’s cap rate north of 6.65%. Over the term of the 10-year hold, an investor should expect an average of 7.5% average yearly stabilized cash yield. Don’t miss out on this incredible chance to own a thriving income-producing asset in a prime location!