Lower than a half mile from downtown Bellevue, WA, lies Ridgewood Company Sq., a sprawling seven-building park-like workplace campus nestled amid 14 acres of lush greenery and meandering walkways. Ridgewood Company Sq. provides handy entry to close by Seattle, the “Emerald Metropolis,” however the story of this KBS property is far more than meets the attention.
Creating Alternatives Throughout Downturns within the EconomyNearly 15 years in the past, the Nice Recession hampered the expansion of many sectors and industries, together with industrial actual property (CRE). The trade noticed transaction quantity plunge by as a lot as 39% from mid-2007 peak ranges. Throughout that point, KBS maintained its acquisition imaginative and prescient and secured the 245,312-square-foot Ridgewood Company Sq. workplace park in December 2009.
Sustaining the Standing QuoFor almost a decade, KBS owned and operated Ridgewood Company Sq. in the identical means the earlier proprietor had left it, making solely small, comparatively minimal modifications as wanted. Tenant occupancy was regular, between 80 and 90%. The property itself was a comparatively unremarkable, homogeneous workplace park that mirrored yearly of its two-and-a-half-decade life. Whereas its location close to the crossroads of Interstates 405 and 90 was favorable, Ridgewood’s total accessibility lacked direct entry.
Elevating the Stakes with Facilities
Previous to the pandemic, when a number of substantial leases have been about to run out KBS determined to take a singular strategy to renovating Ridgewood Company Sq. that might not solely elevate the property from others within the space however would grow to be the gold commonplace for tenant facilities within the metropolis of Bellevue.
In the course of the design course of, KBS determined to go additional than trade requirements and designated greater than 12,000 sq. toes of area for a brand-new state-of-the-art tenant amenity heart that was something however commonplace.
KBS didn’t cease there. The plans additionally included a glossy tenant lounge, collaborative work areas, brand-new convention room, a first-rate 24/7 health heart that includes Peloton bikes and shower-equipped locker rooms with towel service, safe bike storage, a yoga room and an on-site administration workplace with concierge service. The campus would even be dwelling to a number of open-air out of doors assembly areas — and the parking heaps have been going to be fitted with electrical car charging stations. The aim was to create a stimulating surroundings that not solely fostered collaboration and socialization, however promoted a stable work-life steadiness
The Pandemic Shuts Down the Nation
With the design in place KBS started development in 2018. In that point the corporate was in a position to make a number of upgrades to the constructing and customary areas, however when COVID-19 shut down the nation, work on the amenity heart stopped. KBS has a protracted historical past of constructing strategic choices throughout unsure financial instances, so whereas Ridgewood Company Sq. skilled some mission delays on account of provide shortages, renovation development continued.
The Market Takes Discover
In early 2021, Ridgewood Company Sq. completed the multimillion-dollar renovation and opened the amenity heart to tenants. Even whereas its transformation was going down, Ridgewood was turning heads within the native market. It was clearly a change for the higher — exceeding the expectations of tenants and incomes consideration from different landlords within the space.
“We began getting mileage earlier than the amenity heart was even accomplished,” stated Scott Davis, govt vp with CBRE and Ridgewood Company Sq. leasing supervisor. “No person out there had this and we started to get recurrently visited by different constructing operators and tenants for benchmarking excursions.”
Along with the first-of-its-kind amenity heart, tenants now have an onsite meals choice: Poppinjay’s Café. Whereas Ridgewood is surrounded by a wide range of options for eating, procuring and leisure, having an onsite choice was one of many keys to the property’s success.
All through the years, town has accomplished many highway enhancements which have enormously enhanced the property’s entry to the Bellevue central enterprise district. In 2023, work started on a lightweight rail station that can sit straight throughout from Ridgewood Company Sq., making it even simpler for tenants to entry the larger Seattle space.
Ridgewood provides a singular tenant expertise that mixes wonderful property administration, high quality amenities and inventive facilities that promoted a way of neighborhood, security and suppleness. KBS’ strategic flight-to-quality strategy to renovating Ridgewood Company Sq. throughout an unsure financial time can largely be attributed to the continued success of the property.
“Ridgewood Company Sq. continues to face out within the space as a result of we’ve raised the bar for facilities; by doing so, we’ve been in a position to hold the constructing constantly 100% leased,” says Brent Carroll, asset supervisor of Ridgewood Company Sq. and KBS’ senior vp of acquisitions, tendencies and co-director of asset administration.
“The property has grow to be a hidden gem that’s really completely different from the remainder of the market.” Be taught extra about KBS and the industrial actual property trade at kbs.com/news-and-insights/.
