Multifamily

Wellington Court

Listing Price: $3,600,000

Cap Rate
4.85%
Number of Units
31
GRM
11.16
Occupancy
95.00%
Price/Unit
$116,129
Price/Gross SF
$178.66
Gross SF
20,150

Investment Overview

Marcus & Millichap is pleased to have been appointed to exclusively market for sale the Wellington Court Apartments, an attractive value-add opportunity in a high growth submarket of Pierce County. Wellington Court is strategically located within walking distance of numerous restaurants and grocery stores, as well as the Tahoma Village Shopping Center. Within less than half a mile tenants have access to an abundance of public transit stops and routes serving metro Tacoma area.

The current ownership of Wellington Court have been proactive in addressing any deferred maintenance items at the property, and have invested significantly over the past few years in improving the exterior curb appeal of the property, along with a few recent unit interior renovations when turnovers occur. Due to the very long-term tenant base at Wellington Court, in-place rents are an average of 17% below recent lease rents, and 36% below market comparable rents. Wellington Court sits in a submarket of Tacoma that has shown tremendous rent growth over the trailing 5-year period, an average of 8.5% annually. The submarket also has one of the lowest vacancy rates in all of Pierce County, an average of just 3.14% over the trailing 5-year period. Due to a lack of new inventory and competition in the submarket, Wellington Court is positioned to capture future rent growth while maintaining high occupancy due to robust tenant demand as tenants relocate out of higher rent submarkets in search of affordability.

Wellington Court offers a new investor with a substantial value-add opportunity in a high-growth submarket of Pierce County with sufficient economies of scale to support professional management costs. With a strategic unit interior renovation business plan to capture full market rent potential, a new investor could realistically achieve double digit cash on cash returns and create substantial value in the process.

Investment Highlights

  • Property for sale by original developer in 1968
  • Opportunity to increase NOI over 60% through interior renovations
  • Strategically located within one block of Fred Meyer and other major retail stores

Exclusively Listed By

  • Kellan Moll

    First Vice President Investments

    Email Kellan

    License(s): WA: 111361

    Seattle

  • Scott Morasch

    First Vice President Investments

    Email Scott

    License(s): WA: 4731

    Seattle

  • Mitchell Loofburrow

    Associate

    Email Mitchell

    License(s): WA: 131355

    Seattle

Financing By

  • Tammy Linden

    Vice President Capital Markets

    Direct:

    Email Tammy

    Seattle, WA

Listing Price: $3,600,000

Cap Rate
4.85%
Number of Units
31
GRM
11.16
Occupancy
95.00%
Price/Unit
$116,129
Price/Gross SF
$178.66
Gross SF
20,150

Investment Highlights

  • Property for sale by original developer in 1968
  • Opportunity to increase NOI over 60% through interior renovations
  • Strategically located within one block of Fred Meyer and other major retail stores

Investment Overview

Marcus & Millichap is pleased to have been appointed to exclusively market for sale the Wellington Court Apartments, an attractive value-add opportunity in a high growth submarket of Pierce County. Wellington Court is strategically located within walking distance of numerous restaurants and grocery stores, as well as the Tahoma Village Shopping Center. Within less than half a mile tenants have access to an abundance of public transit stops and routes serving metro Tacoma area.

The current ownership of Wellington Court have been proactive in addressing any deferred maintenance items at the property, and have invested significantly over the past few years in improving the exterior curb appeal of the property, along with a few recent unit interior renovations when turnovers occur. Due to the very long-term tenant base at Wellington Court, in-place rents are an average of 17% below recent lease rents, and 36% below market comparable rents. Wellington Court sits in a submarket of Tacoma that has shown tremendous rent growth over the trailing 5-year period, an average of 8.5% annually. The submarket also has one of the lowest vacancy rates in all of Pierce County, an average of just 3.14% over the trailing 5-year period. Due to a lack of new inventory and competition in the submarket, Wellington Court is positioned to capture future rent growth while maintaining high occupancy due to robust tenant demand as tenants relocate out of higher rent submarkets in search of affordability.

Wellington Court offers a new investor with a substantial value-add opportunity in a high-growth submarket of Pierce County with sufficient economies of scale to support professional management costs. With a strategic unit interior renovation business plan to capture full market rent potential, a new investor could realistically achieve double digit cash on cash returns and create substantial value in the process.

Exclusively Listed By

  • Kellan Moll

    First Vice President Investments

    Email Kellan

    License(s): WA: 111361

    Seattle

  • Scott Morasch

    First Vice President Investments

    Email Scott

    License(s): WA: 4731

    Seattle

  • Mitchell Loofburrow

    Associate

    Email Mitchell

    License(s): WA: 131355

    Seattle

Financing By

  • Tammy Linden

    Vice President Capital Markets

    Direct:

    Email Tammy

    Seattle, WA

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