By Jon Peterson
Seattle-based Clise Properties is developing the 450-unit 2202 8th Avenue apartment project in the South Lake Union sub-market of Seattle. The total all in costs of the development is $284 million, according to sources familiar with the project.
Clise Properties did not respond to several phone calls seeking comment for this story.
Part of the financing for the project includes a lender’s first significant investment in the Seattle market by Diamond Realty, a division of the Mitsubishi Corporation.
“This capital source had been looking to find a significant project in the Seattle market. The project on 8th Avenue was something they were very much interested in,” says John Lo, a managing director with JLL in its Seattle office. He and John Manning, managing director, and Alex Witt, executive vice president, led the JLL team that was responsible for arranging the financing on the project. The mezzanine loan was provided in a partnership with Diamond Realty and EverWest Real Estate Partners. The senior construction loan on the project was funded by Bank of the Ozarks.
One of the big amenities in the project will be a sun room on the 40th floor of the development. “This will have very strong views of Elliot Bay and the Olympic and Cascade Mountain ranges. Another feature is a 2,500 square foot dog park and spa area where the renters will be able to take their dogs to. This should be in big demand for all of the dog enthusiasts in Seattle,” said Lo.
Clise Properties broke ground on this project in December, according to its Web site. It did not state when the project will start the leasing efforts or when it will be completed.
There are a lot of new apartments being added the Seattle market. So far the units are getting absorbed at a good rate. “I think that this activity is reflected in that the overall occupancy of Seattle apartments is now at around 95 percent, and the new units are still attracting a great deal of interest,” said Lo.
He believes that the Seattle economy is still attractive. “The job growth in this city is still strong, and I don’t see anything on the immediate horizon that will change that,” said Lo.