940 Water St
Port Townsend, WA 98368
James & Hastings Building · Multifamily Property For Sale · 17 Units

Located in an Opportunity Zone in the heart of Port Townsend’s Historic District at the corner of Water and Tyler, the James & Hastings Building is an 1889-built, four-story brick and stone structure with magnificent architectural aesthetics. The James & Hastings Building benefits from a profitable operating history with long-term tenants and very low turnover, and residents enjoy their walkable location near many of Port Townsend’s neighborhood shops and restaurants. The asset, with a likely 6% cash-on-cash return and 7% cap rate based on current rents and expenses, is a superb investment and is likely financeable with just 25% down. The James & Hastings Building is positioned in an Opportunity Zone on a prominent corner of Water Street, downtown Port Townsend’s primary waterfront road, and is surrounded by an abundance of community amenities. The property boasts a “Very Walkable” walk score of 74 out of 100 and is within 0.1 mile of more than 10 shops and 20+ restaurants and coffee houses, not including the building’s tenants. There are multiple bus stops within a three-minute walk of the property including Jefferson Transit’s route 2 and the 11A/11B shuttle loop, and the Port Townsend Ferry Terminal is just a five-minute walk. Additionally, the Haines Place Park & Ride is 1.2 miles away with connections that take riders throughout the area. The James & Hastings Building is an elegant trophy property featuring an abundance of aesthetic elements that showcase its Victorian vintage. Seven commercial spaces and two storage rooms encompass the James & Hastings Building’s basement, mezzanine, and first floor levels. Retail tenants who have occupied spaces for 10 or more years include Wynwoods Gallery, a retail store operated by a local artist; Cellar Door, a restaurant, cocktail bar, and music venue; and Seams to Last, a children’s clothier. The property’s residential units on the second and third floors are comprised of 4 studio apartments with a shared bathroom, 5 two-bedroom homes, and a huge two-bedroom view unit with a den that would make an incredible home for an owner-occupant. Top-floor tenants enjoy unobstructed views of Port Townsend Bay, and the property offers ample storage space in the basement. There is also a common laundry room that provides additional income. Recent upgrades to the James & Hastings Building include plumbing upgrades, newly painted back stairwell and handrails (2019), fresh paint in the apartment common hallways (2019), recently renovated windows (±7 years), roof improvements with the installation of new flashing in 2018, and a full renovation of one of the two-bedroom units (2017). The James & Hastings Building is stable and profitable in its current operations with 37% of the tenants having occupied their spaces for five years or longer. Additionally, there exists the likely potential for upside in the form of raising rents to market levels. Further, with a likely 7% cap rate, a 6% cash-on-cash return, a low down payment, and a location within an Opportunity Zone this property will, in all probability, prove to be an excellent investment. The James & Hastings Building offers an investor the rare opportunity to acquire a mixed-use building with a long-term tenant base and strong financials in Port Townsend’s desirable waterfront Historic District. The building’s majestic aesthetics and historical significance distinguishes it as an exceptional pride-of-ownership investment, and its prominent corner location in the core of the city’s vibrant commercial sector makes it a wise acquisition. These factors, combined with the availability of 75% LTV financing and today’s low interest rates, make the James & Hastings Building a superb asset that will appeal to a variety of investors from seasoned multifamily owners to boutique hoteliers to owner-occupants.