Investment Overview

Union Green Apartments presents investors with the opportunity to acquire a substantially renovated multifamily asset offering an attractive combination of strong in-place cash flow and compelling value-add potential. The property is currently generating a cap rate in excess of 6.3%, while providing multiple avenues for future revenue growth through a proven in-unit laundry program and the potential addition of one or two residential units. One of the most compelling value-add opportunities is the continued installation of in-unit washer and dryers. In-unit laundry remains one of the most sought-after amenities among apartment renters and is consistently associated with increased tenant demand, improved resident retention, and higher achievable rents. Historically, only the property’s two three-bedroom units featured in-unit laundry. Earlier this year, ownership tested the market by installing washer and dryer hookups in two vacant two-bedroom units and offering the amenity as an upgrade prior to move-in. The results were immediate and measurable. Both units were leased quickly, and ownership achieved rent increases of approximately $120 per month per unit. With installation costs of less than $4,000 per unit, the program generated an estimated 36% return on investment. Eight additional units remain without in-unit laundry, providing a clear and scalable path for future income growth. In addition to the in-unit laundry initiative, Union Green offers a unique opportunity for unit expansion. A detached structure located on the east side of the property currently serves as the community laundry and storage facility. Following their acquisition in 2019, ownership engaged an architect to evaluate the feasibility of converting a portion or all of this space into additional residential units. Preliminary plans indicated the potential to create a new 434-square-foot one-bedroom apartment while maintaining the existing laundry facilities, or alternatively convert the entire structure into two approximately 280-square-foot studio apartments. Ownership also installed an additional electrical panel to accommodate a future conversion, further positioning the opportunity for implementation by a new owner. By executing these proven and identifiable value-add strategies, an investor has the potential to significantly increase net operating income while creating substantial equity through enhanced cash flow. The combination of strong current returns, extensive completed capital improvements, and clearly defined revenue growth opportunities makes Union Green Apartments an attractive investment opportunity within the Tacoma multifamily market.