12524 Addison St SW - Addison St 0.46 Acres of Residential Land Offered at $875,000 in Lakewood, WA 98499

INVESTOR BRIEF: APARTMENTS RE-DEVELOPMENT
Acquisition Price: $875,000 ($35,000/Door) Verified Equity: $60,000+ Instant "Paper Equity" upon purchase
This apartment project is a de-risked, high-density multifamily development opportunity in Lakewood, WA. This asset is being sold as a "Ready-for-Submittal" package, including a professional 2021 Appraisal and over $100,000 in pre-paid engineering and mechanical design.
I. THIRD-PARTY VALUE VALIDATION (THE APPRAISAL) A comprehensive 2021 Appraisal Report (available in the DD room) provides immediate confidence in the asset’s basis:
• Market Value Opinion: $935,000 as of May 2021.
• Highest & Best Use: Officially concluded as Multifamily Redevelopment.
• Strategy: Offered at $875,000—representing a $60,000 discount to the bank-appraised land value, despite significant soft-cost value added since the report date.
II. DENSITY & ZONING (MF3)
• High-Density Framework: Zoning is MF-3 (High-Density Multifamily), which allows for 54 dwelling units per acre.
• Site Capacity: On this 0.45-acre level parcel, the City supports the high-yield 25-unit project concept featured in the design set.
III. THE "DRAINAGE DIVIDEND" ($250k+ SAVINGS) One of the site’s strongest economic drivers is its superior soil profile, verified by GeoConsult:
• Soil Type: Native Continental Glacial Outwash (gravel and cobbles).
• Infiltration Rate: Verified design rate of 20.0 inches per hour.
• Savings: Allows for low-cost underground drywells instead of massive concrete detention vaults ($250k+) typically required in Pierce County.
IV. "READY-FOR-SUBMITTAL" PACKAGE (INCLUDED) Save 6+ months of carry costs. The following completed sets are included:
• HVAC Design.
• Electrical Engineering: Complete demand load calculations and 25-unit riser diagrams.
• Civil Engineering: Preliminary grading, utility, and site plans.
• Landscape & Arborist: Full planting schedules and tree retention plans.
V. TAX INCENTIVE & INTERIM INCOME
• 12-Year MFTE: Confirmed eligibility for the City of Lakewood’s 12-Year Multi-Family Tax Exemption.
• Current Cash Flow: Two occupied residences generating $3,700/mo in gross carry income to offset permitting costs.
VI. MARKET ABSORPTION DATA The submarket exhibits a tight 3.92% vacancy rate. Nearby new builds (Wellstone) achieved absorption rates of 23 units per month, indicating a 25-unit building on this site can reach full stabilization within 90 days.
DD ROOM FOLDER LIST (NDA Required):
1. 2021 Appraisal Report ($935k Valuation)
2. HVAC Design Set
3. GeoConsult Report (20 in/hr Infiltration)
4. 25-Unit Electrical Load Calcs
5. Preliminary Civil & Topographic Set
6. City of Lakewood MFTE Eligibility Letter
VII. DUAL-EXIT STRATEGY: CONDO CONVERSION POTENTIAL While designed as a high-performing rental asset, this apartment project offers a lucrative secondary exit strategy. The site’s high-density MF-3 zoning and the "Class A" nature of the design support a future conversion to individual condominiums.
• The Arbitrage: In the 98499 core, the combined retail value of 25 individual condos historically exceeds the "bulk" value of a rental building by a significant margin.
• Market Demand: With a shortage of entry-level homeownership in Lakewood, these units are perfectly positioned for first-time buyers or military families looking to build equity rather than rent.
DISCLOSURES: Owner is a licensed real estate broker in the State of Washington and is the co-listing agent.