SEATTLE (January 13, 2021) – Real estate development firms Hatteras Sky and Trent Development and capital partner Cresset Diversified Real Estate Capital are set to develop two Opportunity Zone mixed-use mid-rise apartment projects, one in the Jackson Park Neighborhood of Seattle and the other in the “City Center” District of Lynnwood approximately 15 miles north of downtown Seattle.
NorthMarq’s Seattle team of Jake Leibsohn and Ron Peterson arranged $70,000,000 in joint venture equity between the developers and Cresset Diversified.
The 622 Rainier Avenue project is located approximately .5 miles from the future Judkins Park light rail station, anticipated to open in 2023, in the Jackson Park neighborhood bordering the International District, Stadium District, First Hill, and Downtown Seattle. The Project will feature 205 residential units, approximately 5,200 SF of ground level retail, and participate in Seattle’s Multifamily Tax Exemption program, which requires 20% of the units to be dedicated as affordable. Construction is anticipated to begin in March of this year.
Lynnwood is situated within the “City Center” District, an area of new development that will include a new community plaza and park, along with the Lynnwood Transit Center, which will provide light rail access to the region beginning in 2024. The project will include 359 multifamily units and feature approximately 10,000 square feet of ground-level retail. The project will also be enrolled in Lynnwood’s Multiple Unit Housing Property Tax Exemption Program, which will allow for 20% of the units to be dedicated as workforce housing. Construction is slated for summer 2021.
622 Rainier is designed by Studio 19 Architects and Lynnwood by Clark Barnes Architecture. Blanton Turner will be the property manager.
“We are pleased to introduce new, transit oriented affordable housing opportunities to residents in Lynnwood and Jackson Park,” said Patrick Ashman, Principal of Trent Development. “The timing is also distinctive in that both project schedules align with existing infrastructure improvements, including the Lynnwood Link Extension to the light rail.”
“Both projects present unique and attractive TOD opportunities. We are thrilled to provide homes by two future light rail stations that will allow residents immediate access to fast and reliable public transportation to Seattle’s Central Business District, Sea-Tac, and Downtown Bellevue,” said Oz Friedmann, Principal and Managing Director of Development for Hatteras Sky. “We are excited to once again partner with Trent Development on an infill development near multiple amenities in the heart of Seattle as well as collaborate on project in a regional growth district that is forecasted to experience significant population and job growth over the next decade.”
“Cresset Diversified is a leader in the opportunity zone space making them an ideal partner for these two projects. They also share the same positive outlook for Seattle and its suburbs. We are excited to watch these projects as they help transform each of their already vibrant neighborhoods,” said Leibsohn.
“The Cresset Diversified QOZ funds are among the largest to deploy capital into Opportunity Zones across the US, thanks to the strong partnerships we have with developers such as Hatteras Sky and Trent Development,” said Avy Stein, Cresset Founder and Co-Chairman. “Our developments provide exciting opportunities for these Seattle communities and Cresset Diversified is excited to support their success.”
With a walk score of 95 and a transit score of 85, the site at 622 Rainier provides a resource and opportunity-rich neighborhood where future residents can complete their daily errands on foot, and public transport is a convenient option for both travel and commuting needs. The project is in close proximity to CenturyLink and Safeco Fields as well as the Seattle Waterfront where $724 million in revitalization projects are expected by 2023. Seattle is the heart of the Puget Sound Region, the commercial, financial, and cultural center of the Pacific Northwest, and is widely known as a global economic hub.
The Lynnwood Development is ideally situated just southwest of the intersection of Interstate 5 (I-5) and Interstate 405 (I-405), two primary arterials connecting the Greater Puget Sound region that provide direct access to Seattle, Bellevue, and Everett – the three major employment centers surrounding Lynnwood. The project is also in close proximity to major shopping and entertainment centers, and is positioned along the future Lynnwood Link Extension, part of the Sound Transit Link light rail expansion set to cut commuter time to Seattle’s urban core in half by 2024.
Both projects further the development team’s partnership, with ground-up multifamily units already announced and underway in downtown Seattle at 12th Avenue and East Yesler Way within the Central District.
ABOUT HATTERAS SKY
Hatteras Sky is a commercial real estate development firm based in Atlanta that was founded by Jason Cordon and Amy Kelly. In addition to conventional development, the group specializes in development in opportunity zones and historic rehabilitations. Currently, the development pipeline totals more than $1.3 billion dollars for all Hatteras Sky projects. For more information about the firm and its team, please visit the Hatteras Sky website.
ABOUT TRENT DEVELOPMENT
Based in Seattle, Trent Development specializes in real estate development as well as project and construction management. Together Trent Mummery and Patrick Ashman have more than 40 years of experience in the industry and have been intimately involved in overseeing the development of more than 1400 units totaling $850 million in real estate projects in Seattle; Japan; Vancouver, BC; San Francisco and Camdenton, Missouri.
ABOUT CRESSET DIVERSIFIED REAL ESTATE
Cresset Partners, led by private equity entrepreneurs Avy Stein and Eric Becker, united with Diversified Real Estate Capital, led by Larry Levy, to create Cresset Diversified Real Estate, a joint venture partnership focused on core real estate development investments in Qualified Opportunity Zones. Cresset Diversified is currently raising their second fund, Cresset Diversified QOZ Fund II, which targets opportunity zone projects with the potential for substantial risk-adjusted, tax-advantaged returns. Fund II recently closed on its first deal—two multifamily buildings in the Seattle metropolitan area—and has two additional deals under LOI. Previously, the Cresset Diversified partnership launched its first fund, Cresset Diversified QOZ Fund I, in December 2018 and raised $465 million to invest in seven institutional-quality projects located in top-tier markets around the country. *
*The contents hereof are not to be used as the basis for making any investment decision and are not a recommendation of, or solicitation for, the subscription, purchase, or sale of any security, including the fund mentioned herein.
ABOUT NORTHMARQ
As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $15 billion, loan servicing portfolio of more than $64 billion and the multi-year tenure of our more 600 people.