Tacoma Townhomes Portfolio offers the opportunity to acquire four townhome communities as a combined portfolio or on an individual asset basis. Built between 2006 and 2014, the portfolio includes 2- and 3-bedroom townhome residences that have been meticulously owned and managed since construction. With vacancy below 3%, near-zero delinquency, and in-place rents approximately 10% below market, the portfolio provides durable current income and a clear path to continued revenue growth.

The portfolio includes attractive assumable financing with fixed interest rates ranging from 3.49% to 3.63% and June 2032 maturities. At approximately $300,000 to $350,000 per unit, the offering provides institutional-quality scale at a meaningful discount to comparable individual 2- and 3-bedroom townhome sales in the area, which generally range from around $400,000 to $480,000 per home.

Ownership began a comprehensive management transition on January 1, 2025. Financial results during the period include temporary start-up and stabilization costs related to elevated turnover, resident utility billing implementation, and other non-recurring operating items. These costs are not expected to reflect stabilized operations.

Throughout 2025 and the first half of 2026, ownership completed significant leasing, collections, resident-turnover, and unit-readiness initiatives across the portfolio. While recent operating results reflect the associated costs, these efforts have positioned the asset for a streamlined transition to new ownership. The portfolio now benefits from stabilized occupancy, near-zero delinquency, established operating processes, and substantially completed unit-turn and resident account remediation.

Several elevated expenses relate to the current management platform rather than the properties’ ongoing operating needs. Portfolio-level staffing, a dedicated leasing office and model-unit expense, and enterprise property-management software are not expected to transfer to a new owner. Although a buyer will incur a customary management fee, a more streamlined operating model provides a meaningful opportunity to reduce operating costs.

Additional upside can be found in the renovation program. Management has upgraded a significant portion of turned units with durable wood-style flooring in place of carpet, and renovation work continues at Proctor Street Townhomes. Combined with below-market rents, limited vacancy, favorable assumed debt, and a lower operating-cost burden, the portfolio offers a differentiated opportunity to acquire several well-located townhome communities with immediate scale and even more value-add potential.

Acquire 98 townhome units across four communities in Tacoma’s sought-after North and South End neighborhoods. Being sold on behalf of the original developer, and built between 2006 and 2014, the portfolio features spacious 2- and 3-bedroom townhome floorplans at an attractive basis of approximately $320,000 per unit.

The portfolio includes attractive assumable financing with more than five years of remaining term, fixed interest rates from 3.49% to 3.63%, loan-to-value ratios above 50%, and June 2032 maturities.

In-place rents remain approximately 10% below market, creating a clear opportunity to grow revenue through renewals and unit turnover. The existing light renovation program can support premiums of approximately $200 per month above current market rents.

 Tacoma’s North and South End submarkets have demonstrated meaningful long-term rent growth. Asking rents have increased 69.09% in North Tacoma and 74.23% in South Tacoma since 2016, including growth of 18.60% and 22.19%, respectively, since 2021.

 The portfolio offers convenient access to major regional employers, including Joint Base Lewis-McChord, Tacoma General Hospital, and St. Joseph Medical Center. The Port of Tacoma, which supports more than 42,100 jobs, $3.4 billion in wages and benefits, and nearly $10.8 billion in annual business output, is easily accessible from every property in this portfolio. 

Both submarkets benefit from positive absorption trends.

In Q2 2026, North Tacoma recorded demand for 66 units with no new supply delivered, while South Tacoma absorbed 121 units against 90 units of new supply, pointing towards continued occupancy and rent-growth potential.