SEATTLE, WA – September 26, 2017 – CBRE Capital Markets has secured $33 million in construction financing for the development of Zella Apartments, a Class A, mid-rise multifamily project consisting of 128 market-rate units in Seattle, WA.
The loan is being funded through the U.S. Department of Housing and Urban Development’s (HUD) Section 220 new construction mortgage insurance program, providing an interest-only construction period of 19 months with a 40-year, non-recourse and fully amortizing permanent loan.
Mollie Means and James Bach of CBRE’s Debt & Structured Finance team in Seattle originated the loan through CBRE’s FHA lending platform on behalf of the borrower, Zella Apartments LLC, which is managed by Anderson-Lanterman Investments LLC.
The property is located at 429 2nd Avenue West in the lower Queen Anne neighborhood of Seattle. The seven-story project will include a mix of open one-bedroom, one-bedroom and two-bedroom units with live/work lofts. The apartments will have a below-grade parking garage with 52 parking spaces. The project will utilize City of Seattle’s Multifamily Property Tax Exemption (MFTE) Program and will provide 18 affordable units. In addition, there are also eight Housing Affordability and Livability Agenda (HALA) units that were required as part of a voluntary rezoning of the land.
The community amenities will include a tenant lounge, media room, fitness center, roof deck, BBQ area, controlled entry, secure parking garage and a pet area. The building is being designed to meet LEED efficiency standards and reduce the impact it will have on the environment.
Tejal Pastakia of Pastakia + Associates, partnered with the borrower to provide development services for the construction of Zella Apartments. Encore Architects, who designed the project, has extensive experience in designing mid-rise multifamily projects in Seattle. The general contractor is the Graham Group. The property will be managed by GREP Southwest, LLC, an affiliate of Greystar Real Estate Partners, LLC.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.