Top 10 Multifamily Completions in the Pacific Northwest
Demand for new residential units in the Pacific Northwest was very strong during the last 12 months, bolstering development especially in the high-end segment.
Demand for residential units in the Pacific Northwest’s main metros, Seattle and Portland, was strong in 2018 and is expected to hold throughout 2019 as the area continues to add jobs. Known for the quality of living and affordable housing costs compared to other West Coast tech hubs, the two cities have been attracting a large number of young professionals who are consolidating the high-end renters cohort.
According to Yardi Matrix data, rent in Seattle averaged $1,831 in March, nearly $400 higher than the national average. In Portland, rents continued to trail the national average, reaching $1,386 in March. The large wave of new units being delivered in the two markets last year has impacted rent growth, with Seattle rents, according to Seattle Times, growing at one of the slowest rates in the country.
In terms of development, Seattle outperformed Portland during the 12 months ending in March, as the city has been adding luxury towers in core submarkets such as Belltown to satisfy the demand from its growing tech workforce. The below top 10 list of largest projects completed during the last four quarters shows that only one such development is located in Portland, which is indicative of the apartment boom in the Emerald City. Portland continues to experience the strongest building cycle in its history, with 5,096 units coming online in the metro in 2018. Nevertheless, demand continues to outpace supply due to the city’s healthy demographics.
10. Southside by Vintage – Seattle
Completed in February 2019, the fully affordable community at 125 S.W. 112th St. encompasses 298 studio to three-bedroom units whose floor plans range from 530 to 1,423 square feet. The property also includes a small number of live-work apartments of 897 square feet. The four-building community provides access to a range of amenities which include a fitness center, business center, community room, basketball court, playground, media room and a parking lot for up to 149 vehicles. Vintage Housing broke ground on the asset in the fall of 2016, after contracting a $55 million loan from Citibank. Southside by Vintage is located in an opportunity zone in the White Center submarket.
9. Broadstone Saxton – Seattle
Alliance Residential Co. recently delivered Broadstone Saxton, a 325-unit community in the First Hill submarket. Located at 520 Terry Ave., the asset follows the model of Alliance’s other signature Broadstone properties across the country, known for their innovative materials and green features. Broadstone Saxton encompasses one- and two-bedroom units, a sky terrace, garden courtyard, club room, fitness lounge, conference center and more than 7,000 square feet of retail space on the ground floor. Private balconies are available in select units. The community is subject to an $88.8 million construction loan secured via Helaba in 2016.
8. Highland Crossing – Vancouver, Wash.
The 332-unit community at 11806 N.E. 122nd Ave. in Vancouver, Wash., was the largest multifamily asset to be completed in the Portland metro area during the past 12 months. The developer, IDM, secured a $30 million construction loan in 2017, which it refinanced one year later via a $50.6 million Fannie Mae loan with CBRE Capital Markets. The asset encompasses one-, two- and three-bedroom units ranging from 569 to 1,310 square feet which can be rented at an average of $1,431 per month. Less than one year after it opened, Highland Crossing was 94 percent occupied.
7. West Edge – Seattle
The upscale, Tom Kundig-designed 39-story tall residential tower is located at the busy intersection of Second Avenue and Pike Street. The owners, a partnership between Urban Visions and Mitsui Fudosan America, registered the building for LEED certification to the Gold level. The tower encompasses 340 one- and two-bedroom units, eight of which are penthouses with customizable finishes which can be rented starting from $13,140 per month. West Edge offers a vast number of luxury amenities and green features, and unit sizes range between 500 and 2,700 square feet. Rents at the property average $3,700. The property is subject to a $123 million construction loan with Sumitomo Mitsui Bank.
6. Arrivé – Seattle
The 41-story tower at 2116 4th Ave. has gone through several stages of development until final completion in February 2019. Work at the project, formerly dubbed Potala tower, stopped in 2014 and resumed in 2017 under a new development team, The Molasky Group of Companies, and a new name. The architect was Weber Thompson while interior design was provided by Hirsch Bedner Associates. The tower, which is undergoing LEED certification to the Silver level, offers 344 units, a fitness center, business center and clubhouse. The building also includes a 142-key hotel.
5. Airmark – Tukwila, Wash.
Airmark consists of two towers, 18 and 19 stories tall, and it offers 358 residential units as well as 135,000 square feet of hotel and retail space. Located at 229 Andover Park E. in Tukwila, Wash., the property provides residents with views to the Andover Park East and Mount Rainier and proximity to Southcenter Mall. Amenities include a green roof, rooftop terrace, rooftop gym, business center, clubhouse, Dog Park and a 300-vehicle parking lot. The community provides studio, one- and two-bedroom units as well as four three-bedroom penthouses which can be rented starting at $6,281. Rental rates for the other units range between $1,296 and $2,500. Omar Lee owns the property while Alliance Residential is the manager.
4. Assembly 118 – Seattle
Originally called Othello Station North, the mixed-use project at 4200 S. Othello St. changed its name into Assembly 118 to include the last three digits of the local zip code. The development includes 359 units featuring one- and two-bedroom floor plans, a large community room on the ground floor, a gym, rooftop space with a dog run and patio areas. Monthly rents averaged $1,834. Parking is also available for 257 vehicles. In august 2018, Woodbridge Northwest secured a $65 million loan with New York Life Insurance Co. to refinance the 2016-construction loan funded by Bank of America.
3. Sitka – Seattle
Vulcan recently delivered Sitka, a 384-unit community undergoing LEED Platinum certification at 1255 Harrison St. in Seattle’s Belltown submarket. Construction costs are estimated at around $100 million, which the company covered via a $105 million loan contracted at the end of 2016 with Northwestern Mutual Life Insurance Co. The majority of units feature one-bedroom floorplans, but the property also includes 11 two-bedroom townhouses ranging between 884 and 1,359 square feet. The average monthly rent was $2,734 with the smallest units renting for approximately $2,000. Approximately 20 percent of units are affordable.
2. McKenzie – Seattle
The 40-story tower is located at 2202 8th Ave. in the Belltown submarket and provides 450 units and approximately 7,700 square feet of retail space at the first floor. The majority of units feature one- and two-bedroom floorplans ranging from 500 to 1,626 square feet and equipped with Bosch appliances, California closets and quartz countertops. The ellipse-shaped building provides stunning city views from every home. Amenities on the last floor include a wraparound deck, outdoor living rooms with fireplace seating, sun deck with chaise lounges, pet spa and outdoor run and island with television and barbeques. The building also offers a private spa retreat, yoga room with on-demand fitness technology, outdoor spa sanctuary and 24/7 concierge.
1. Kiara – Seattle
The Belltown submarket has seen a number of luxury residential towers complete during the last 12 months with Kiara topping the list of the largest projects. The 41-story development at 111 Terry Ave. N. provides 460 units and more than 15,000 square feet of retail space. As the building awaits its LEED Silver certification, residents and their pets can enjoy a number of perks which include first-floor dog run, gym and fitness studio on the seventh floor and rooftop deck. Monthly rent averages $3,500 while apartments range between 420 to 3,000 square feet. In 2015, owner Holland Partners contracted a $180 million construction loan via North America Sekisui House to complete the building.