Investment Overview

The Seattle Investment Sales Team of IPA has been retained as the Exclusive Listing Brokers for the sale of Sterling Ridge, a 116-unit multifamily community centrally located in Kent, Washington, within 35 minutes of downtown Seattle or downtown Bellevue. This meticulously maintained asset presents a straightforward value-add investment opportunity despite recent exterior and common area improvements.

Sterling Ridge is conveniently located at the confluence of Puget Sound’s main freeways and arterials with easy access to Interstate 5, State Routes 167, 181, 509, and 516 providing one of the best access points to the region’s major employment centers. Downtown Seattle, the Eastside, Renton, Kent Valley, and SEA International Airport are all five to 35 minutes away. The Kent Transit Center and Sounder Commuter Train are within three miles of Sterling Ridge, offering bus and rail access into downtown Seattle. Sterling Ridge is also located near several major retail destinations and lifestyle amenities. Kent Station, a 20-acre mixed-use development with open-air shopping, dining, and office space is less than 10 minutes away. Kent Station operators include an AMC Theatre, Duke’s Seafood, Mama Stortini’s, LOFT, Road Runner Sports, and much more. A pedestrian boardwalk through Kent Station extends to Kent Transit Center.

Value-Add investment opportunity

Ability to capitalize rental upside by completing unit renovations to achieve a contemporary and harmonized standard. Approximately half of the units have undergone some renovations within the last three years, offering renovation savings for an incoming investor. Suggested renovations include new cabinets, countertops, appliances, and flooring.

EXCELLENT PHYSICAL PLANT

Attractive curb appeal which has been meticulously maintained throughout ownership. Extensive exterior and common area improvements were recently done, including a full clubhouse renovation, and new siding, windows, and chimney stacks on all residential buildings.

LARGE FLOOR PLANS, BALANCED UNIT MIX

Balanced unit mix offering one-bedroom homes with ±720 square feet, two-bedroom homes with ±930 square feet, and three-bedroom homes with ±1,132 square feet for an average unit square footage of ±988 across all floor plans.

EASY ACCESS TO EMPLOYMENT HUBS

Centrally located from the main employment hubs of downtown Seattle, Bellevue, and the Eastside (25 to 35 minutes). Kent Valley, Renton, and SEA International Airport are all within 15 minutes. The Sounder Commuter Train offers a convenient commute to downtown Seattle with Kent Station less than three miles from Sterling Ridge.

strong submarket growth

Per CoStar, Kent’s forecasted rent growth is 4.2% in 2024. Over the past several years, rent growth in Kent has been amongst the highest in the Seattle MSA, given its affordability and coupled with its close proximity to multiple employment hubs and suburban amenities.Over the last decade, its population grew by 40% compared to 14% for the Seattle MSA. By 2027, Kent’s population is expected to grow by another 6.5%.

housing affordability

The average single-family home price in South King County is $658,205, making homeownership over twice as expensive than renting at Sterling Ridge. As interest rates continue to climb and for-sale housing supply remains low, housing affordability continues to remain unfavorable.