Heritage Grove is an exceptional investment opportunity in Renton, Washington, offering significant upside potential with the termination of 30-year LIHTC restrictions on January 1, 2025, allowing for immediate rent increases of 21% to market rates. The property’s value-add potential is further enhanced by its lightly remodeled unit interiors, which present an ideal opportunity for renovations that could yield monthly rent premiums of $100+ per unit. Additional income streams can be unlocked through a RUBS program, projected to generate $65,000 annually, and monetization of the property’s ample parking options. With minimal deferred maintenance and recent capital improvements, the property is well-positioned for operational efficiency and long-term growth. Strategically located in the heart of Renton, residents benefit from seamless access to major freeways, transit options, and employment hubs, including Microsoft, Amazon, and Boeing, while enjoying a 35% lower cost of living compared to Seattle. Renton’s thriving economy, anchored by aerospace, technology, and healthcare industries, supports a robust renter pool with a 62% occupancy rate and projected household income growth of 32.9% over the next five years. The city’s affordability, coupled with its proximity to Greater Seattle’s job centers, has driven strong rental demand, with average effective rents reaching $2,113 as of 3Q2024. Renton’s cost-of-living advantage and expanding affluent renter base make it a compelling market for investors seeking stable returns and long-term appreciation. This property’s combination of immediate rent growth, value-add potential, and strategic location positions it as a premier investment opportunity in one of Puget Sound’s fastest-growing submarkets. INVESTMENT HIGHLIGHTS: · Significant Upside Potential: With 30-year LIHTC restrictions terminating effective January 1, 2025, and in-place leases ending by May, rents can be immediately increased by an average of 21% to market rates without significant changes to operational expenses. · Value-Add Opportunity: While the property has undergone light remodeling over the years with upgraded appliances and cabinetry in kitchens and bathrooms in the marker rate units, the majority of units remain in classic condition, making it an ideal candidate for a full value-add program while pushing rents to market rate. Post-renovation, monthly rent premiums of $100+ per unit are projected across all unit types. · Further Upside Potential: Implementing a RUBS program across all 56 units would generate nearly $65,000 in additional annual operating income by recovering 85% of utility costs. · Ample Parking: The property offers 80 surface spaces and 12 carports, creating opportunities for additional income while providing residents with abundant parking options. · Pivot-Point Location: Located in the heart of Renton, Washington, the property connects residents to freeways, airports, seaports, and railways. It offers direct access to Interstates 405 and 5, King County Metro and Sound Transit Express buses, and Sounder Commuter Rail services between Tacoma and Downtown Seattle. · Employer Arterial: The property provides easy access to major Eastside employers like Microsoft, Google, T-Mobile, Amazon, and Boeing. Residents enjoy a 35% lower cost of living compared to Seattle while staying close to these employment centers. · Minimal Deferred Maintenance: ownership has undergone several capital expenditure projects in recent years including exterior painting, landscaping upgrades with tree removal and planting, repairs and seal coating to concrete and asphalt, siding and roof repairs, and leasing office remodel.