By Jack Stubbs
Equity Residential recently announced its plans to expand its Puget Sound region portfolio, with development recently started on a 137-unit development located adjacent to the bustling Pike/Pine corridor in Capitol Hill.
Equity Residential, a company that has residential projects in markets across the country including Manhattan, Boston, Washington D.C., San Francisco, Los Angeles and Seattle, recently began another 137-unit project in the works in the Emerald City, according to the company’s recently-released 10-K form, in which it explored its financial earnings as of fourth quarter 2017.
The newest undertaking, located at 1401 E. Madison directly adjacent to the Pike/Pine corridor, will contain 137 units and has a total estimated budgeted capital cost of $62,352,000, according to the list of development and lease-up projects as of December 31st, 2017. The property is currently 3 percent complete, according to the 10-K form.
Development on the project has begun. The architectural completion phase permit (permit to build) for the project was issued on Aug. 21st 2017, according to Shelley Bolser, land use team supervisor with the Seattle Department of Construction and Inspections.
Construction is expected to be completed third quarter 2019, with the asset expected to be fully stabilized in first quarter 2020, according to Equity Residential’s report. The net investment in the real estate asset as of December 21st 2017 was $18,334,009.
And while the construction plans for the project located in the heart of Capitol Hill are now officially in the pipeline, the city last reviewed the development at a Design Review Recommendation meeting in July 2016, almost one-and-a-half years ago. Fazio Associates is the landscape architect and Ankrom Moisan is the architect. In addition to the 137 residential units, the development will also include 3,800 square feet of street-level commercial area space and 78 below-ground parking stalls.
Given the project’s central location, it’s no surprise that the developer’s goal—as articulated in the project plans submitted to the city—is to create a development that improves the pedestrian experience along 14th Ave. and embodies an architectural character that is consistent with neighboring developments in the Capitol Hill neighborhood.
The now-under-construction project is just half a mile from Cal Anderson Park and the adjacent Light rail station and just one mile to the east of several prominent downtown locations such as the Washington State Convention Center and Westlake Park, and just three miles from Pike Place Market.
And the developer is already very familiar with the area where its newest project is taking shape. Three of the company’s other properties in Capitol Hill—the 80-unit Pearl Apartments, the 61-unit Packard Building Apartments and the 156-unit Rianna Apartments—are all within less than half a mile of the 14th and Madison project.
Equity Residential’s newest undertaking will also add to its substantial existing portfolio in the broader region as well: the company currently has 27 properties throughout the Puget Sound region, with properties throughout downtown Seattle, West Seattle, Ballard; and also on the Eastside, with roughly nine apartment communities around Bellevue and Redmond.
The pipeline for the multifamily market in Seattle—Capitol Hill in particular—is robust, with many units on the way. According to Colliers International’s fourth quarter 2017 Seattle Development Pipeline Report, in Seattle there are currently 30,276 units planned for delivery over the next five years and 8,199 deliveries planned over the next 12 months. There are also currently 12,232 units under construction and another 24,873 units planned or permitted. Of Seattle’s eight different submarkets, the Capitol Hill/Central District submarket accounts for the lion’s share of developments in the pipeline: there are 6,402 units planned for delivery over the next five years; 1,839 planned over the next 12 months; and another 1,552 units under construction, according to the report.
Some of the other apartment communities on the way in the area include Lake Union Partners’ 145-unit 2220 E. Union St. project (slated for completion in third quarter 2018); Daly Partners’ 135-unit 718 Rainier Ave. S. project (slated for completion in first quarter 2019); and Johnson and Carr’s Pike Flats, a 90-unit development slated for completion at the beginning of 2019.