16,250 square feet 0.37 acres...as the nation’s 15th largest metro area, seattle added an...

16,250 SQUARE FEET 0.37 Acres602-610 Tacoma Ave S, Tacoma, WA 98402

www.hfore.com • (503) 241.5541

602-610 Tacoma Ave S

OFFERING MEMOR ANDUM

An incredible development opportunity in the heart of Tacoma. The 16,250-square-foot lot is zoned Downtown Residential, which has a height limit of 90 feet and can accommodate high-density commercial development.

For multifamily projects, the property’s zoning provides a 2:1 Floor Area Ratio by right. Still, FARs of 4:1 and 6:1 can be obtained by following the city’s design standards and via the city’s Transfer of Development Rights program. Additionally, density is not restricted by the number of units, and the following areas also do not count toward FAR:

- Spaces below grade- Ground-floor retail that fronts the sidewalk- Spaces devoted to special features- Parking areas- Mechanical equipment rooms, elevators, and stairwells- Exterior decks, balconies, and corridors open to the air

Retail, office and educational uses are also allowed; industrial applications are prohibited. Located a few blocks from Wright Park on the west side of Tacoma, the location is nestled between the Stadium District and UW Tacoma’s Campus. The current tenants at the property produce an annual gross income of $42,000 before owner's expenses.

Rand [email protected](253) 393.6538

Lee [email protected](971) 717.6346

PHYSICAL INFORMATION

Total Acreage: 0.37Sq Ft: 16,250City: TacomaCounty: PierceZoning: DR

TAX INFORMATION

APN: 200612-0-010

16,250 SQUARE FEET602-610 TACOMA AVE S • TACOMA, WA 98402

FOR MORE INFORMATION

HFO Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

www.hfore.com(503) 241.5541Fax: (503) 241.5548

Brokers licensed in the States of Oregon and Washington.

$110$1,800,000PRICE PRICE PER SQ FT

2 HFO INVESTMENT REAL ESTATE

3HFO • TACOMA, WA

5HFO • TACOMA, WA

7HFO • TACOMA, WA

TACOMATHE CITY OF DESTINY

ABOUT | HISTORYTacoma is part of the Seattle-Tacoma-Bellevue MSA. It is the second-largest city in the Puget Sound region and third largest in the state. Tacoma is the county seat of Pierce County. Tacoma adapted its name after nearby Mount Rainier. Tacoma is known as the “City of Destiny” as it was chosen during pioneer times as the western terminus of the Northern Pacific Railroad. The railroad was the driving force behind creation of the Port of Tacoma, the state’s largest shipping hub, located in Commencement Bay.

POPULATIONIn 2018 the Seattle-Tacoma-Bellevue region’s population was 3,939,363. The Puget Sound MSA was the fastest growing big city of the last decade. As the nation’s 15th largest metro area, Seattle added an additional 18.7% to its population—114,000 souls through 2018—and it keeps growing.

Tacoma is recognized as one of the most livable and walkable cities in America. Its largest employer is Joint Army/Air Force Base Lewis-McChord which employs more than 57,000 people.

VACANCY AND RENT GROWTHTacoma saw largest rent increase in the nation last year according to the real estate data firm Trulia. As of July 2019, Trulia estimates that rents in Tacoma have increased 8.5% year over year.

Tacoma saw the construction of just 810 new apartment units in 2017, approximately 570 in 2018 and just 549 in 2019. Tacoma’s vacancy rate as of 2019 is 2.5% with developers reporting waitlists for all new units. A report released in January 2020 by ECONorthwest found that Washington state underproduced housing stock by more than 225,000 units.


TACOMATHE CITY OF DESTINY

DOWNTOWN TACOMA Tacoma’s downtown is busy with students attending the University of Washington campus, and it is home to the state’s highest density of art and history museums. The city is also known for its restored urban waterfront.

TRANSIT & TRANSPORTATIONThere are seven highways that end or pass through Tacoma, the dominant of which is Interstate 5. Tacoma has buses, commuter rail, light rail and ferries. Commuter rail operates transportation to and from downtown Seattle. Sound Transit also offers light rail linking the Tacoma Dome with the University of Washington and points downtown, with expansion in the planning stages. Washington State Ferries travel from Point Defiance to the southern tip of Vashon Island. Amtrak trains offer regular daily service from Vancouver B.C. in the north and south to Eugene, Oregon.

NOTABLE FEATURESIn addition to the Tacoma Dome (max. capacity 23,000), Tacoma has two suspension bridges across a narrow section of the Salish Sea known as the Tacoma Narrows, which links Tacoma to Gig Harbor on the Kitsap Peninsula.

UTILITIESTacoma’s power and water company has been publicly owned since 1893.

SCHOOLS & HIGHER EDUCATIONSchools and Universities include Tacoma Public Schools which includes 36 elementary, 11 middle and 10 high schools.

Colleges and Universities in the area include the University of Puget Sound, Tacoma Community College, City University of Seattle-Tacoma, Bates Technical College, Evergreen State College, Corban University, and the University of Washington - Tacoma.

LOCAL MUSEUMS & PARKSTacoma has a number of exceptional museums and parks, including Point Defiance Zoo & Aquarium, the state history museum, America’s Car Museum, the Museum of Glass and the Tacoma Art Museum—known for its expansive collection of glass by native son Dale Chihuly.

Downtown Tacoma’s Broadway Center for the Performing Arts is home to three theaters that host performances by the Tacoma Opera, Symphony Orchestra, City Ballet, Tacoma Philharmonic and Youth Symphony, among others.

NEIGHBORHOODSTacoma has more than 50 distinct neighborhoods.

9HFO • TACOMA, WA

TACOMATHE CITY OF DESTINY• In 2019, Tacoma was listed by

Freddie Mac as among the top 10 multifamily investment markets.

• Sunset magazine picked Tacoma as the “Best Place to Live in the Northwest for 2018.” Sunset cited Tacoma’s resurgent downtown, museums, train service to downtown Seattle and low cost of housing as key advantages.

• MeetingSource.com named Tacoma #1 in the U.S. for hosting conventions of up to 1,000 attendees. (2018)

• Tacoma was ranked #12 with in Forbes’ “Best Places for Business and Careers.” (2020)

9.1% Population growth between 2010 and

2018

$58,617 Median household

income

49% Renter population

of Tacoma

18,150 Workers added to Tacoma MSA labor

force-2019

167

167161

167

162

410

18

164

99509

509

163

16

7

512

5

5

5 Lake Tapps

Newaukum

Lake Morton-Berrydale

North Puyallup

Puyallup

Alderton

McMillin

Bonney Lake

Prairie RidgeSouth Hill

SummitMidland

Waller

Parkland

Lakewood

University Place

Ruston

Gig Harbor

Sunrise Beach

TahlequahLakeland

NorthGig Harbor Federal Way

Lakeland South

Auburn

Covington

Pacific

Summer

Algona

Rosedale

ArtondaleForest Beach

Shore Acres

Fox Island

Carr Inlet

Carr Inlet

Wollochet

McNeil Island

Wollochet

Ketron

Eastward

Fircrest TACOMA

Data sources: U.S. Census Bureau; Bureau of Labor Statistics; Washington Employment Security Department



EMPLOYMENT OPPORTUNITIESPierce County is a coastal area in northwestern Washington State that includes Puget Sound. The highest point in Washington State, Mt. Rainier at 14,410 feet, is located in Pierce County.

Initially, lumber was the main economic driver as the region’s timber was used in local shipyards and Fort Lewis was built on 70,000 acres of land. Tacoma’s Port and its place as the leading economic engine fell to Seattle after World War II with the establishment of The Boeing Company in Seattle, which was later followed by Microsoft. As technology, software, biotech and Internet companies led to a regional economic revival, workers in Pierce County began commuting to Seattle. Today, more than 25% of those in Pierce County drive to jobs in King County, where housing costs are much higher. Pierce County has diversified out of manufacturing and lumber into healthcare and the expansion of Boeing aerospace manufacturing.

The median 2018 wage in Pierce County was $67,868, and occupations with higher than average wages are expected to grow over the next 5 years. The county’s peak industries are (a) trade, transportation and utilities, (b) government and (c) educational health services.

The fastest growing sectors are government, hospitality, and construction. Seattle and Tacoma’s ports formed an alliance, making their combined work the third-largest container gateway in North America.

LABOR FORCEWhile Pierce County has the benefits of a large and easily accessible city, its cost of living is lower than nearby King County (Seattle) but higher than nearby Thurston County (Olympia). Large businesses are attracted to the area by its lower costs and accessibility to larger cities like Portland and Seattle.

HOUSING & RENTAL VACANCY RATE38.3% of housing in the county is renter-occupied, and the median value of a home in Pierce County is $277,000 according to the U.S. Census Bureau.

PIERCE COUNTY TOP EMPLOYERS – PIERCE COUNTY

Employer Employee CountArmy/Air Force Base Lewis-McChord 54,000MultiCare Health System 8,264Washington State Employees 7,745CHI Franciscan Health 5,862City of Tacoma | Tacoma Public Utilities 3,653Tacoma Public Schools 3,481Puyallup Tribe 3,422Pierce County Government 3,118Puyallup School District 2,690Bethel School District 2,565Emerald Queen Casino 2,194Safeway | Albertsons 2,160Clover Park School District 1,680Boeing 1,550International Longshore & Warehouse Union Local 23 1,500State Farm Insurance Companies 1,461Amazon Distribution Centers 1,400Fred Meyer 1,364US Postal Service 1,336Costco 1,200Sumner School District 1,065Davita 1,025Comcast Cable 1,000Pierce Transit 985Camp Murray 980Franklin Pierce School District 897Milgard Manufacturing 880Target 878Walmart 878

(Source: Tacoma Economic Development Board, Jan. 2020)

11HFO • TACOMA, WA

LOCATION

5

50916

1677

CENTRAL TACOMA

SOUTH TACOMA

NORTH END

N 30th St

Sprague Ave

N Schuster Pkwy

N 21st St

S 12th St

S 19th St

S Union Ave

Orchard St

Emerson St

S 9th St

S 11th St

S 15th St

S 38th St

Pacific AvePacific Ave

S Yakima Ave

E 56th St

N 6th AveDivisio

n Ave

N Tacoma Ave

S Tacoma Ave

S Tacoma Way

N I St

Emerald Queen Casino I-5 in Tacoma

US Oil & Refining

Washington State Terminals

Tacoma Community

College

Tacoma Mall

Cheney Stadium


COMMENCEMENT BAY

Swan Creek Park

MultiCare Allenmore Hospital Emergency Department

St. Joseph Medical Emergency Room

Fircrest Golf Course


LOCATION

5

5

CENTRAL TACOMA

Lincoln High School

Cheney Stadium

University of Puget Sound

Puyallup River

Allenmore Golf Course

MultiCare Allenmore Hospital Emergency Department

Sprague Ave

S 9th StS 11th St

S 15th St

Pacific Ave

S Yakima Ave

Division Ave

S Tacoma Ave

N I St


LeMay – America's Car Museum

St. Joseph Medical Emergency Room

Mary Bridge Children's Hospital: Emergency

Department

S 12th St

S 19th St

S 38th St

Center St

N 6th Ave

S Union Ave

S Tacoma Way

Tacoma Mall

509

7

Washington State History Museum

Museum of Glass

Tacoma Art Museum

Children's Museum of Tacoma

16


FOR MORE INFORMATION

MAIN CONTACTSRand Hoffman • [email protected]

Lee Fehrenbacher • [email protected]

OTHER CONTACTSGreg Frick • [email protected]

Rob Marton • [email protected]

Tyler Johnson • [email protected]

Jack Stephens • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

HFO Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

www.hfore.com(503) 241.5541Fax: (503) 241.5548

Brokers licensed in the States of Oregon and Washington.

PRICE SUMMARYPrice: $1,800,000Price Per Sq Ft: $110

PHYSICAL INFORMATIONTotal Acreage: 0.37Sq Ft: 16,250City: TacomaCounty: PierceZoning: DR

TAX INFORMATIONAPN: 200612-0-010

16,250 SQUARE FEET602-610 TACOMA AVE S • TACOMA, WA 98402


HFO Investment Real Estate

2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • 503.241.5541

Passion • Collaboration • Specialization

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. ©2020 HFO

Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate.

16,250 square feet 0.37 acres...as the nation’s 15th largest metro area, seattle added an...

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