Monday, June 13, 2011
|Seattle Times||Daily Journal of Commerce Headline|
|Touchstone buys South Lake Union block from Seattle Times||Lake Union Partners plans 300 apartments|
|Central District apartment complex fetches $56M||Lake Union Partners Seattle plans to develop 300 apartments in the Seattle area over the next three years, beginning in July with the 52-unit Azure Ridge near Valley Medical Center in Renton.
Tonkin/Hoyne Architecture & Urban Design is the designer and High Country Contractors is the builder.
A 27-unit building on Stone Way North just north of North 41st Street in Seattle’s Wallingford neighborhood is also planned. Construction should begin in February of 2012 on that project, which was designed by Weber Thompson. MRJ Constructors is the contractor and Decker Consulting Engineers the civil engineer.
Lake Union Partners is made up of principals Tyson Feaster, who has real estate finance experience, Joe Ferguson, with a commercial brokerage background, and Patrick Foley and Scott Roberts, formerly partners at The Justen Co. of Seattle.
Two years ago the group began preparing to develop apartments based on research that showed more people were choosing to rent versus buy, Ferguson said.
Lake Union Partners will focus on 30- to 100-unit projects because they can be permitted and built quickly and are easier to rent than bigger complexes, he said. Some projects will have surface or tuck-under parking to save money.
The group is being creative about financing and development. For instance, principals in High Country Contractors are equity investors in the Renton project, and Lake Union is joint venturing on the Wallingford complex with Matt Orr, owner of Apartment Financial of Seattle. Orr got the site under contract and approached the developers about doing the project together, Ferguson said.
Lake Union Partners has a north Capitol Hill site under contract and plans a 50-unit project, Ferguson said. It also intends to buy properties in neighborhoods near downtown Seattle.
It is seeking equity investors or partners on all the projects.
The four-story Wallingford complex will be between Seattle Pacific University and the University of Washington. Employees and students from both schools will be targeted as renters, as well as other young professionals.
The complex will have mostly one-bedrooms with a few studios, 1,500 square feet of retail, a roof deck, 21 surface parking stalls and a Flex Car. Units will average 650 square feet and rent for $2 per square foot.
The developers are seeking conventional financing for the $4.5 million project.
The Renton project will be at 10436 S.E. Carr Road, in a garden-style complex with three buildings. Renters are expected to come from Boeing, Ikea and Valley Medical Center, which recently underwent a big expansion.
The complex will have mostly two-bedroom units (with some studios, ones and threes), 87 surface stalls, a kids play area and a multi-use open space. Units will average 1,000 square feet and rent for $1.25 per square foot.
Total cost is $8 million. A U.S. Department of Housing and Urban Development 221(d)(4) loan will provide about 85 percent of the construction/permanent financing.
Cramer Northwest is civil engineer and Michael Nouwens Structural Consultants is structural engineer.
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