Seattle—Alliance Residential Co. has broken ground on Broadstone Koi, a 166-unit, LEED-certified residential project in Seattle’s Ballard neighborhood. The project is slated for completion during the first quarter of 2013.
The property will consist of studio, one- and two-bedroom units housed in five stories of wood-frame construction over two levels of parking. According to the developer, the units will feature natural light, large balconies and features such as granite countertops and wood-plank flooring. Above the third floor, most units will offer views of such notable vistas as Salmon Bay, Mt. Rainier, Puget Sound and the Olympic and Cascade mountains.
Broadstone Koi is located within Ballard’s retail district, about two miles from downtown Seattle. Alliance says that the market for the property will be young, well-educated renters-by-choice.
The Seattle rental market is quite strong these days. The Spring 2011 Dupre+Scott Vacancy Survey put the market’s vacancy rate at 4.6 percent, well down from the Fall 2009 survey, when the rate was 7.2 percent. About 3,400 units are scheduled for completion over the next two years, according to Dupre+Scott, a marked contraction from the 4,148 units completed in 2010 alone. Yet demand is up, spurred by the partial recovery of jobs in the Seattle area from the unemployment spike in 2008 and ’09.
Lenders are interested in Seattle apartment development once more. “We’re building this project with a loan from Mutual of Omaha,” Dan McCadden, partner/managing director of development for Phoenix-based Alliance, tells MHN. “In terms of financing, Seattle is a preferred lender market for multifamily right now. That fact, coupled with the development of a solid infill mixed-use opportunity guaranteed by Alliance, translated to favorable construction lending terms. Alliance is willing to pledge its significant net worth to meet the covenants required for construction loans.”