Riverside Terrace Apartments 14081 58th Ave S 13 Unit Apartment Building $2,950,000 ($226,923/Unit) 6.05% Cap Rate Tukwila, WA 98168

Riverside Terrace Apartments is a well-maintained 13-unit community situated near the intersection of 58th Ave S and Interurban Ave S, just north of I-405 in Tukwila, WA. Originally built in 1967, the property features wood-frame construction on a concrete slab foundation with marblecrete, T1-11, and brick veneer siding. The building is enhanced with vinyl double-pane windows and a mansard roof replaced in 2015–2016.
Riverside Terrace presents a compelling opportunity for investors seeking both stable in-place income and meaningful upside potential. After acquiring the property in 2015, current ownership completed interior and exterior renovations, leaving the asset in excellent condition and competitive within the submarket. The property currently generates strong returns with rents that remain well-positioned for further growth.
Significant upside exists through an additional targeted interior renovation program. Updating kitchens and bathrooms with modern finishes such as stone countertops, upgraded vanity packages, and installing luxury vinyl plank flooring throughout could support rental premiums of up to 15% above current levels, averaging an additional $250 per unit per month. Ancillary income can also be increased by enhancing the utility bill-back program and capturing additional parking revenue. Together, these improvements could drive Net Operating Income growth of approximately 21%, substantially boosting both cash flow and long-term equity value.
Beyond operational upside, Riverside Terrace also benefits from a large 0.94-acre HDR-zoned site, providing a unique opportunity for expansion or redevelopment. The existing site layout allows for the addition of an 8-unit building in the underutilized green space, increasing total unit count to 21. Alternatively, investors may explore a full redevelopment, with zoning permitting the construction of approximately 30 new units.
Riverside Terrace combines immediate income, proven durability, and multiple paths for future value creation, making it an attractive acquisition for both cash flow-focused and growth-oriented investors.