Ridgewood Center is a fully stabilized asset with a 3.85 WALT & 8.27% cap rate

32,334

TOTAL SF

100%

Occupancy

Kidder Mathews, as the exclusive advisor, is pleased to present the opportunity to acquire Ridgewood Center, a fully leased, multi-tenant office property strategically located in one of suburban Seattle’s most dynamic and high-performing submarkets.

This fully stabilized office building offers investors a reliable income stream supported by a diverse mix of eight tenants representing a range of industries, including both professional office users and medical service providers. This tenant diversity reduces exposure to any single sector and enhances overall asset resilience. With a Weighted Average Lease Term (WALT) of approximately 4.07 years and no lease expirations for more than two (2) years, the property provides strong near- and long-term income security. The staggered lease maturities further contribute to long-term cash flow stability, positioning the asset as a low-risk, income-generating investment opportunity.

Financials

Property Overview

32,334

PROPERTY SF

$6.95M

LIST PRICE

$214.94

LIST PRICE PSF

Cap Rate

8.27%

YEAR 1

Net Operating Income

$575,008

YEAR 1

Unleveraged IRR

10.35%

10-YEAR HOLDING PERIOD

Leveraged IRR

12.80%

10-YEAR HOLDING PERIOD (INTEREST RATE 5.75%)

Debt Assumption: Fixed rate debt, 5.75%, 25 year amort, 65% LTV.

FULLY STABILIZED ASSET

This fully stabilized office building offers investors a reliable income stream backed by eight tenants across professional office and healthcare sectors. The diverse tenant mix reduces exposure to any single industry and strengthens overall asset stability. With a Weighted Average Lease Term (WALT) of approximately 3.85 years, the property ensures near- and mid-term income security. Staggered lease maturities further enhance long-term cash flow, positioning the asset as a low-risk investment.

INCREDIBLE RETURNS

At the offering price of $6,950,000, the asset delivers an attractive in-place capitalization rate of 8.27% in Year One. Preliminary lender feedback suggests that conservative debt financing of up to 65% loan-to-value is available at an interest rate of approximately 5.75%. Based on these assumptions, the investment is projected to generate an unleveraged internal rate of return (IRR) of approximately 10.35%, and a leveraged IRR of 15.15%, offering compelling risk-adjusted returns.

QUALITY TENANCY

Ridgewood Center, occupied by eight (8) tenants across a mix of professional office and medical uses, exemplifies a fully stabilized, low-risk office investment. The tenant base, comprising both local and national operators, supports strong renewal potential and long-term income growth throughout the hold period. With a Weighted Average Lease Term (WALT) of approximately 3.85 years, the property offers durable near- and mid-term income visibility while maintaining long-term stability valued by investors and lenders alike.

SUBURBAN ASSETS PERFORMING AT THE HIGHEST DEGREE

Federal Way stands out as the strongest performing submarket in the South Puget Sound region. Regional and national tenants view Federal Way as an ideal location for corporate headquarters or satellite offices. In today’s market environment, where tech-centric submarkets face heightened scrutiny, the South Sound region is increasingly attracting investor interest. Traditionally trading at a discount to Bellevue and Seattle, the South Sound is anchored by stable, traditional users such as financial services firms and law practices, a profile that is gaining favor among investors. Strong absorption trends and the submarket’s proven resilience further reinforce its appeal as a reliable and attractive investment opportunity.

33650 6th Ave S, Federal Way, WA