Upon closing $300 million of investment capital in True North III, Grosvenor Americas announces Seattle project with long-term partner Intracorp.
Grosvenor Americas (‘Grosvenor’), a privately owned international developer and investor, announces that its Structured Development Finance (‘SDF’) business has closed a new financing commitment with Intracorp through Grosvenor’s True North III Partnership.
The commitment of $30M in equity financing will be used to build an apartment building in Seattle’s Northgate neighborhood. The 220,000-square-foot, five-story property will deliver 295 homes, 59 of which will be below market rate. Designed by local Seattle-based architect Studio Meng Strazzara, the building is expected to break ground in early 2022 and complete in 2024.
The development project is located at 11201 Roosevelt Way NE, in Seattle, Washington, six miles north of downtown. The expansion of the Northgate Mall; the addition of the Seattle NHL team facility; and imminently opening rapid transit station present an opportunity to invest in a well-established but evolving neighborhood.
Brian Biggs, Director of Research for Grosvenor Americas, states: “We have been investing in Seattle for more than 20 years. Our long-term belief in the market helps us look through short-term volatility. During the pandemic, employment in the greater Seattle metro fell 5%, but employment is forecast to grow 13.1% cumulatively to 2025. Job growth in Seattle’s primary economic engine – the technology industry – clocked 4% year-over-year in Q1. In other words, the technology jobs rebound has been so strong that technology employment is higher today than the pre-pandemic baseline.”
Alex Henderson, SVP Co-Investment at Grosvenor Americas said: “Our relationship with Intracorp is well-established and long-standing. Grosvenor and Intracorp have been investing in properties together for over 20 years, and the Northgate deal marks our 25th project. Together, we have helped deliver more than 2,500 homes in California, Seattle and Vancouver.”
Lis Soldano, VP of Development at Intracorp shared: “This isn’t your average Seattle neighborhood. Northgate was home to the first covered mall in America and became a landmark for retail in the greater Puget Sound. With the new Sound Transit station, a catalyst for redevelopment, more retail and lifestyle experiences are coming, and our partnership with Grosvenor Americas will contribute to this exciting neighborhood transformation.”
The closing of the Northgate deal in Seattle marks the second transaction for Grosvenor’s True North III Partnership, following the announcement of a 10-story condominium project at Eighth and O Streets NW in Washington, D.C. with Roadside Development earlier this year.
True North III is the third iteration of a Grosvenor partnership to fund residential and mixed-use developments in the U.S. and Canada. Since 2000, the Company’s SDF business has acted as a capital provider to 76 residential development projects representing over 6,300 residential units and $3.5bn in gross development value.
Grosvenor has operated a diversified real estate development and investment business in North America since 1952. The Company actively manages its $2.8B investment portfolio and is executing on a proprietary development pipeline that will deliver 4,200 homes across its active markets. Consistent with the firm’s farsighted approach to investment and development, Grosvenor Americas values long term partnerships: across their nine active investment partners, the average relationship is 20 years.
About Grosvenor Americas:
Grosvenor Americas has been an active developer and investor in several high-quality cities across the U.S. and Canada for 69 years. Our strategy is to invest in vibrant urban areas where our activities can make a positive contribution to neighborhoods and communities, which we deliver through our Living Cities approach. Since 2004, we have helped supply 12,300 quality homes and have transacted $4.6bn in investment property in the high-growth markets where we operate.
As one of the first North American signatories to the World Green Building Council’s Net Zero Carbon Buildings Commitment, our business is guided by ESG principles and underpinned by a promise to achieve net zero operations by 2030.
We are active in the high-growth transit-oriented and/or amenity-rich neighborhoods of Seattle, Vancouver, the San Francisco Bay Area and Washington, D.C. Our Development Program focuses on residential mixed-use projects; most developments in our USD $2.7bn pipeline will deliver to LEED Gold standards. We also add value to residential, commercial and retail assets, actively managing a portfolio of 59 stable properties in our Investment Program. Additionally, we run a Structured Development Finance business that provides funds to leading residential developers who provide much-needed housing.
As of December 31, 2020, Grosvenor Americas had assets under management of USD $3.6bn.We are part of Grosvenor Group, one of the world’s largest privately-owned international property companies and active in Britain & Ireland, Europe, Asia Pacific and North America. With $15.2bn of assets under management and a track record of 344 years, Grosvenor develops, manages and invests with a purpose of improving property and places to deliver lasting commercial and social benefit.
For over 40 years, Intracorp has been dedicated to building extraordinary homes and communities, earning a reputation as one of North America’s leading real estate developers in the process. Every new building begins with a unique vision, drawing inspiration from the local surroundings. Then, materials and architectural details are carefully considered. The resulting development is more than just structurally-sound – it’s a living, breathing community all its own. From intimate townhome communities to iconic gateway towers, the urban-built environment has been shaped, in part, by Intracorp with a singular goal – to create extraordinary homes and experiences.