Lipoma Firs Townhomes 18002 Lipoma Firs E 56 Unit Apartment Building For Sale Puyallup, WA 98374

MARKETING DESCRIPTION:
Lipoma Firs Townhomes is a 56-unit townhome community built in 2017 in Puyallup, Washington. The property offers spacious 2- and 3-bedroom homes averaging 1,481 square feet on a low-density 3.18-acre site.
Lipoma Firs stands out with highly attractive assumable financing, including a 2.87% interest-only loan with an approximate $10.92 million balance through November 2028. This in-place financing debt creates a major advantage for buyers seeking below-market financing in today's capital markets environment.
Located in a predominately single-family neighborhood with limited nearby multifamily competition, Lipoma Firs offers a compelling option for renters looking for more space, privacy, and an affordable alternative to homeownership. The asset is one of only four multifamily communities within a half-mile radius, which further strengthens its position in the submarket. Each units includes 2.5 bathrooms, a rare feature for this product type and especially uncommon in 2-bedroom floorplans.
The property also benefits from strong market fundamentals. South Hill's population grew 12% over the past five years and is projected to grow another 14.5% through 2030, supporting continued renter demand. The submarket has recorded 20% rent growth over the last five years with no new quarterly supply, while Lipoma Firs was 95.2% occupied as of the most recent reporting period.
As a newer vintage asset, Lipoma Firs offers investors the opportunity to acquire a well-built community with minimal deferred maintenance and clear upside in rents. Current in-place rents average $2,460, which sits 11% below market, creating an opportunity to capture additional growth and push rents closer to the $3,100 market average for three-bedroom units.
The local economy adds another layer of stability, supported by healthcare, retail, and major regional employment drivers. Many residents commute to Tacoma, while proximity to the Port of Tacoma and Joint Base Lewis-McChord strengthens the area's long-term appeal. Together, these employment hubs support approximately 41,000 and 54,000 jobs, reinforcing demand from a broad renter base.
INVESTMENT HIGHLIGHTS:
Attractive Assumable Financing: Lipoma Firs offers assumable financing with a 2.87% interest-only loan and an approximate $10.92 million balance through November 2028, giving buyers rare access to below-market debt in today's financing environment.
Large-Format Townhome Community: The property features 56 spacious 2- and 3-bedroom townhome units averaging 1,481 square feet, creating a true suburban housing alternative on a 3.18-acre site.
Strong Interior Finish Package: Each unit includes mini-split air conditioning, wood cabinetry, quartz countertops, stainless steel appliances, in-unit washers and dryers, oversized garages, private patios, walk-in closets, fireplaces, and select Mt. Rainier views.
Amenities That Support Resident Retention: Community amenities include playgrounds, a basketball hoop with tetherball, and a fully fenced-in dog park, helping attract and retain families and pet owners.
Supply-Constrained Location with Revenue Upside: Lipoma Firs is one of only four multifamily communities within a half-mile radius, positioning the property to benefit from limited competition and continued rent growth. The submarket reported 95.17% occupancy in Q2, 20% rent growth since 2021, and no new quarterly supply.
Favorable Supply-Demand Fundamentals: The submarket recorded demand for 47 units with no new deliveries in the quarter, underscoring constrained supply and supporting healthy market fundamentals.
Compelling Affordability Profile: In-place annual rent equals just 15.37% of the average household income within a one-mile radius, reinforcing the property's affordability and supporting durable renter demand.