Alliance Residential Company LLC, based in Phoenix, is planning another residential project in Seattle’s First Hill neighborhood. With two projects finished last year, one under construction on Denny Way and two planned on James Street, Alliance has a total of 893 residential units in the pipeline in Seattle that are scheduled to be delivered by 2018, according to Dupre + Scott Apartment Advisors.
Rated as the number one developer and general contractor for 2016 by the National Multifamily Housing Council, Alliance has more than $10 billion invested in real estate and manages a $14 billion portfolio. Even though the firm has had a presence in Seattle for many years, never before has it invested as deeply into the city’s market as it has over the last year.
Alliance does a really exceptionAL job with common areas and probably sets the market with resident lobby amenities
“Alliance does a really exceptional job with common areas and probably sets the market with resident lobby amenities,” said Dylan Simon, a vice president for Colliers International in Seattle. “They’re also very forward-looking with retail tenants, and try to use local retailers in their most recent projects.”
The seven-story 74-unit Broadstone Lexington proposed project, located at 1050 James Street, will be designed to resemble the historic quality that is found in First Hill’s neighborhood. Its streetscape was inspired by the adjacent Old Colony Condominium. Amenities include a green roof with a BBQ and dining space, private balconies and a courtyard. Estimated completion is set for the third quarter of 2018.
Located across the street at 1001 James Street, the Broadstone Saxton proposed project is an eight-story apartment building with 325 units and 5,682 square feet of retail space. According to Alliance, the project relates to the community’s lineage through materiality, scale and nuanced pedestrian details. It states that it seeks to evoke the history of the community.
According to the Downtown Seattle Association, First Hill is regarded as Seattle’s first neighborhood where pioneer families established roots and left behind a rich history of classic homes, gardens and churches. The diverse neighborhood is also home to some the world’s most respected medical and research institutions, such as Swedish Hospital and Virginia Mason Medical Center.
“What’s exciting about First Hill is it hasn’t had a lot of new development this cycle, but lately we’ve had some new projects going on,” said Simon. “Its also getting some connectivity with the First Hill Streetcar, with the Broadway extension, which helps connect First Hill to Capitol Hill, and on down to Pioneer Square. The neighborhood’s also been getting more market rate housing, and with that more retail is coming.”
According to the 2016 Seattle Apartment Market Study, published by Colliers International’s Seattle multifamily team, even with record delivery of new apartment units in Urban King in 2015, rental rates continue to rise while vacancy is stable at four percent. According to the market study, Urban King consists of all of Seattle, West Bellevue and Kirkland. The quantum of delivery of new apartment units begins a massive ascension in 2016 with over 9,000 units planned for delivery. During 2017 to 2019, another 27,000 units are planned, with even more developments in early planning stages. The team also says that the coming years will test the resilience of many neighborhoods within Urban King.
“The Pacific Northwest is a challenging, yet rewarding, market that values thoughtful development,” said Noel Johnson, a managing director for Alliance in the Pacific Northwest in a prepared statement.