Construction of two multifamily, mixed-use developments totaling 556 units in qualified opportunity zones in Seattle-area neighborhoods will begin this year after NorthMarq arranged $70 million in joint venture equity for Trent Development and Hatteras Sky.
The two firms partnered with Cresset-Diversified Fund, a NorthMarq-sourced institutional equity group, to develop the two transit-oriented properties. The JV equity deal was arranged by Vice President Jake Leibsohn and Senior Vice President Ron Peterson, both of NorthMarq’s Seattle regional office.
Construction on the first project, 622 Rainier, a 205-unit multifamily mixed-use project in the Judkins Park neighborhood of Seattle, will begin in the first quarter. Groundbreaking for Lynnwood Apartments, a 351-unit multifamily mixed-use project in the City Center District of Lynnwood, Wash., will follow 622 Rainier.
Leibsohn said in a prepared statement Trent Mummery and Patrick Ashman, the two principals of Trent Development, were able to identify some of the best located OZ sites because they were early movers in opportunity zone development. He called Cresset-Diversified Fund an ideal partner for the two projects because they have been a leader in the opportunity zone space. Leibsohn and Peterson also have experience in opportunity zone development having secured more than $115 million in equity for OZ projects in 2020.
They have also worked with Trent Development and Hatteras Sky in the past. In May, Leibsohn and Peterson arranged a $45 million joint venture equity on behalf of the two firms for development of 12th & Yesler, a 274-unit multifamily, mixed-use community near the downtown Seattle Central Business District, First Hill and International District.
New Project Details
The 622 Rainier project, located at 622 Rainier Ave. about .5 miles from the future Judkins Park light rail station, is slated to begin construction in March. In addition to 205 residential units, the development will have about 5,200 square feet of retail space. The development will participate in Seattle’s Multifamily Tax Exemption program, which requires 20 percent of the units be dedicated as affordable. Studio 19 Architects is designing the property and Blanton Turner will be the property manager.
Lynnwood Apartments will have 359 multifamily units and approximately 10,000 square feet of ground-level retail. The property will be near the future Lynnwood City Center Transit Center, which will provide light rail service beginning in 2024. The development will be enrolled in the Lynnwood Multiple Unit Housing Property Tax Exemption Program, which will allow for 20 percent of the units to be dedicated as workforce housing. Construction is expected to begin in the summer. Clark Barnes Architecture is designing the asset, which will also be managed by Blanton Turner.
This Lynnwood opportunity zone is also the site of another planned multifamily project. Canyon Partners Real Estate and American Capital Group are developing Kinect at Lynnwood, a 239-unit community slated for completion in summer 2022.