Timberwood Apartments 10701 109th St SW 42 Unit Apartment Building $8,150,000 ($194,048/Unit) Tacoma, WA 98498

Timberwood offers the opportunity to acquire a 42-unit apartment community on more than three acres of land in the Lakewood submarket of Tacoma. This property features spacious 1-, 2- and 3-bedroom floor plans that attract a wide renter base. Its location gives residents direct access to more than two million square feet of retail at the Tacoma Mall and Lakewood Towne Center. Nearby Fort Steilacoom Park and American Lake enhance the property's appeal and support long-term demand for investors in a submarket with historically stable occupancy.
Momentum Already in Place
Current ownership has invested around $700,000 in capital improvements, including landscaping and tree removal, upgraded lighting, plumbing and electrical work, new aluminum carports, parking lot resurfacing and striping, and roof repairs and replacement. On the unit interiors, nine units have been renovated to include vinyl plank flooring, stainless steel appliances, updated lighting fixtures, new shower surrounds, hard-surface countertops, undermount sinks, and shaker-style cabinetry. Eight additional units have been mostly upgraded within the last year with LVP flooring, new appliances, and modern lighting reducing future renovation costs.
These improvements have already addressed much of the property's deferred maintenance and created a clear path for even more revenue growth in the future. New ownership will have the opportunity to build on the work already completed by capturing rent premiums on renovated units, continuing upgrades across the remaining classic units, and improving overall operations. This strategy offers a near-term opportunity to increase revenue without completing a full-property renovation right away.
Looking beyond the numbers, Timberwood is located in an excellent submarket that is experiencing steady growth. Lakewood's proximity to Tacoma attracts residents working for the area's major employment centers, including the expanding South Sound healthcare sector and Joint Base Lewis-McChord.
Overall, Timberwood combines meaningful recent capital improvements, clear revenue upside, and a well-located position in a growing submarket to create an attractive value-add investment opportunity.
INVESTMENT HIGHLIGHTS:
-Favorable Unit Mix: Timberwood offers a mix of spacious 1-, 2- and 3-bedroom floor plans averaging 937 square feet, appealing to families, roommates, and renters seeking more space at a relative discount to single-family housing options.
-Strong In-Place Rent Growth: Current blended in-place rents provide approximately 2.8% upside to market, with additional upside of more than 10% through continued execution of the existing renovation program, while asking rents in the submarket have increased 24.8% since 2021.
-Meaningful Capital Improvements: Current ownership has invested approximately $700,000 in capital improvements, including full renovations to nine units and significant renovations to an additional eight units, landscaping, plumbing and electrical breaker and panel upgrades, $132,000 in roof repair and replacement, low-maintenance carports, and parking lot improvements.
-Value-Add Upside: Recent lease trade-outs have achieved rent premiums of up to 6%, demonstrating near-term pricing momentum and supporting the opportunity to increase net operating income by approximately 36% through renovation of the remaining classic units.
-Prime Location: Timberwood is located near Tacoma's major employers, retail destinations, and recreational amenities, with convenient access to I-5, the Seattle metro area, and the Port of Tacoma, which supports approximately 41,000 jobs and $10.8 billion in total business output.
-Diverse Demand Drivers: Timberwood benefits from proximity to a diverse employment base anchored by Joint Base Lewis-McChord, the South Sound healthcare sector, and Tacoma's broader economic corridor.