Avalon Court Apartments Kennewick, WA
Pre-recorded Webinar
Investment Highlights
What makes the Avalon Apartments opportunity so compelling is its rare combination of location, upside, and timing. This is a true off-market, value-add property — well-situated in a fast-growing Tri-Cities submarket — and acquired without the typical bidding war that drives down investor returns.
We’ve been actively sourcing deals throughout 2025, looking for the right fit: an asset with rental upside, long-term potential, and pricing that makes sense. In today’s competitive environment, it's often the highest bidder who sacrifices returns. But with Avalon, we were the only buyer at the table — and we secured it at the right price.
This is exactly the kind of property we look for. Owned by the same family for decades, the units are mostly original. The current owners are nearing retirement, and the property has been under-managed from a potential revenue standpoint.
With our standard renovation package, we expect to see a 20% increase in rents — all while improving livability for residents and value for investors.
Undervalued Asset in Growth Market:
Kennewick is experiencing strong population and job growth, but supply of Class B housing has not kept up. Avalon is priced below replacement cost with significant upside potential.
Value-Add Renovation Strategy:
$546,000 CAPEX budget to renovate interiors and upgrade operations.
Attractive Financing Terms:
75% LTV loan with 6.10% interest rate and 1-year interest-only period.
Favorable Exit Environment:
Conservative exit cap rate assumption of 5.75%.
High Barriers to Entry:
Regional constraints on new multifamily development, and rising construction costs support long-term demand for Avalon’s unit profile.
DOWNLOADS
Funding Deadline
Target Equity Multiple
Investment Minimum
Hold Period
Target ARR
INVESTMENT TYPE
Single-Asset Investment
LLC ASSET CLASS
Multi-Family Apartment
(Workforce, Class B)
INVESTMENT STRATEGY
Light Value-Add w/ Rent Upside
TOTAL EQUITY RAISE
$1,400,000 PURCHASE PRICE $4,550,000
TARGET HOLD PERIOD
Sale in 5 Years
INTERNAL RATE OF RETURN
16.8%
ACQUISITION FEE
3%
ASSET MGMT
2% Revenue
Tri-Cities, WA
Population Growth:
+68% over 20 years;
+10.6% over next decade
Job Growth Drivers:
Healthcare, logistics, agriculture,
clean energy, government services
Rental Market:
Sub-5% vacancy expected by 2030; high
rent-to-income ratios signal ongoing
demand for affordable mid-tier housingLifestyle Appeal:
Warm climate, riverfront access, and
quality schools continue to attract
families and professionals
Property Overview
Avalon Court Apartments is a 33-unit, Class B value-add multifamily opportunity located in Kennewick, WA, part of the Tri-Cities MSA—one of Washington’s fastest-growing and most stable secondary markets. With rising demand for affordable, mid-market housing and a constrained development pipeline, Avalon presents an attractive opportunity to deliver durable cash flow and long-term value creation through strategic renovations and management efficiencies.
- PURCHASE PRICE: $4,550,000
- NUMBER OF BUILDINGS 3
- NUMBER OF UNITS 33
- RENTABLE SQUARE FEET 30,330
- AVG. UNIT SF 920
- YEAR BUILT 1978
- HOT WATER/HVAC Individual units
- ROOF Pitched
- CONSTRUCTION Garden Style
- UTILITIES / METERING Electric/Water/Sewer – RUBs
- COMMUNITY AMENITIES Sport Court | Picnic & BBQ | Open Space
About the Tri-Cities
Population Growth
Recent/Current Data
- The Tri-Cities region had ~322,875 residents in 2025.
- From 2022 to 2023, the region added ~4,550 people.
- Since 2000, the Tri-Cities have expanded by approx. 131,000 people equalling 68% growth.
Forecast / Trend
- Forecast of 33,000 additional residents by 2030.
- Projected 10.6% population growth by 2035.
- Region may reach 350,000 residents by 2030 at >1% annual growth.
Implication for Multifamily Investment
- Sustained population growth will increase demand for rental housing, supporting stable occupancy and rent increases for multifamily assets.
Job & Sector Growth
Recent/Current Data
- Healthcare sector grew ~38% over the past decade.
- Hospitality and food sectors grew ~33%.
- Education, construction, and business services show recent growth.
Forecast / Trend
- These sectors expected to continue expanding with population growth.
- Likely rise in middle-income employment supporting multifamily demand.
Implication for Multifamily Investment
- Expanding job sectors provide economic stability and attract working professionals seeking quality rental housing.
Housing Supply
Recent/Current Data
- 70% of recent population growth comes from in-migration.
- In 2025, Tri-Cities added ~2,725 residents; Kennewick accounted for ~670.
Forecast / Trend
- Inbound migration trends expected to continue.
- Risk of housing demand outpacing supply without new multifamily development.
Implication for Multifamily Investment
- Demand pressure will likely reduce vacancy rates and drive rent growth, especially in well-located assets.