Prevailing Cap Rates in Tacoma Washington

[Troy Fisher]

So I've got a Commercial Broker sending me leads from MFR in Washington, he's operating mostly in the Tacoma - Olympia area. But I'm blown away by the prevailing cap rates going on. Can anyone shed some light on the reason that cap rates are so low in the area?

Sold Comps

Year Built -- 1980, Cap Rate -- 5.53 Price - $899,000

Year Built -- 1978, Cap Rate -- 6.71 Price - $1,385,000

Year Built -- 1974, Cap Rate -- 6.81 Price - $1,900,000

A 40 year old building, in University Place with a less than 7% cap rate? The only conclusion I can draw is that it's Seattle Investors who want something they can drive who are paying all cash. What are your thoughts?