PORTLAND, Ore. – Berkadia announced today the financing secured for Heartwood, a to-be-built eight-story, midrise multifamily property in Seattle, Washington. Managing Director Fred Dockweiler of Berkadia Portland secured the $25.6 million in construction financing and Freddie Mac forward take-out loan on behalf of the sponsor, Washington-based Community Roots Housing. The deal closed on November 4.
The 10-year Freddie Mac affordable housing loan features a 35-year amortization schedule and an 80 percent loan-to-value ratio.
“The project will be home to middle-income residents earning 60 to 100 percent AMI, housed in a unique project near Seattle’s core,” said Dockweiler. “The development project will ultimately be financed with a $25.6 million Freddie Mac loan and equity funding stemming from the project’s location in an Opportunity Zone. The sponsor, Freddie Mac and the financing partners persevered for nearly 12 months to bring a one-of-a-kind project together that will have a long-term impact on the neighborhood and its residents.”
Located at 1323 E Union St., Heartwood will be constructed out of Cross Laminate Timber (CLT) and will contain 126-units of middle-income housing. The property will afford residents convenient access to Seattle University, downtown Seattle and the shops and restaurants along East Madison Street and East Union Street. Construction is expected to be completed in early 2023.