Royal Plaza
8510-8534 S Tacoma Way, Lakewood, WA 98499
Marketing description
The property consists of approximately 12,989-squarefoot retail space situated on ±1.14 acre and is currently occupied by eight seasoned tenants, with one vacant unit offering lease-up upside for an investor or potential owner-user opportunity.
The center features a stable mix of foods and service tenants, with several shop spaces currently leased below market rates. This presents a compelling value-add opportunity through the lease-up of the existing ±3,000 square foot vacancy, future rent increases, and/or strategic re-tenanting. For investors seeking stable in-place income with meaningful NOI growth potential, Royal Plaza represents a rare opportunity that balances downside protection with upside potential.
Royal Plaza benefits from its proximity to Joint Base Lewis-McChord (JBLM), home of I-Corps and the 62nd Airlift Wing. JBLM is one of the largest military installations on the West Coast, supporting ±60,000 military and civilian personnel, contributing nearly $3 billion annually to the local economy, and serving over 254,000 residents in the surrounding area.
The property is surrounded by a strong roster of national and regional retailers, including H-Mart Supermarket, Pal-Do World Market, WinCo Foods, Lowe's, Safeway, Walgreens, Starbucks, McDonald’s, Wells Fargo, and Chick-fil-A. This creates a high-traffic and synergistic retail corridor.
The property is strategically located and offers convenient access to key regional destinations.
Positioned in the heart of South Tacoma submarket, this is one of most active retail corridors in Pierce County. Royal Plaza benefits from a dense and growing population base of more than 295,000 residents within a five-mile radius, with an average household income exceeding $99,000.
This 1031 exchange-ready asset offers an attractive combination of stable cash flow, seasoned tenancy, value-add potential, and a prime location.
Investment highlights
- Value-Added Center - 5.7% Cap Rate on in-place income at 77% occupancy and 7.27% Cap Rate on proforma income at 97% occupied
- Owner-User Opportunity - approximately 3,000 SF available for Owner-User opportunity
- Seasoned Tenant Base - All tenants have occupied the property for over 10 years providing income diversity with daily-use, service oriented, and necessity-based businesses.
- Koreatown Tacoma location - Strategically located adjacent to H-Mart, the largest Korean supermarket chain in the U.S.
- Out of State Ownership - First time on the market in over 20 years.
- Strong Infilled Location - Positioned in high traffic retail corridor with a diverse and stable economic base.
- High Barriers to Entry - Supply-constrained submarket with limited availability for new retail development.
- Below-Market Rents - Mark to market opportunity across shop spaces with annual rent increases.
- Lease Up Opportunity - Approximately 3,000 SF of vacancy provides immediate upside.
- Stable Cash Flow with Upside - Combines reliable in place income with near term growth potential.
- Compelling Risk Return Profile - Opportunity to capture both yield and appreciation in a high demand market.
- Internet-Resistant Tenancy - Foods and Service tenants provide durable, needs based demand
- NNN Lease Structure - Minimal Landlord Responsibilities
- Staggered Lease Expirations - Allows flexibility and phased rent growth over time
- Strong Regional Economy - Strong South Tacoma submarket, driven by Port of Tacoma, Joint Base Lewis-McCord and the manufacturing and tech Sectors.
- Proximity to JBLM - Approximately 58,000 military and civilian personnel, nearly $3 billion annual economic impact
- Established Retail Corridor - Surrounded by strong national retailers and dense and dense residential neighborhoods.
- Strong Local Base - Population exceeding 283,000 within 5 miles radius and average household income of over $110,000.
- Ideal 1031 Exchange Opportunity - Seasoned tenants, stable income, with value-add upside.
- Offered Free & Clear - Flexible for all-cash or leveraged buyers
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Broker Selected Comps View More Comps
Property History
Tax History
Similar Properties
Additional Information
Is there information that looks off?
