Los Angeles-based Lowe Enterprises Real Estate Group will be breaking ground by early 2017 on a housing project near Redmond Town Center, on the corner of NE 74th Street and 168th Avenue. The new residential development does not yet have an address; before construction can begin the developer must first demolish an existing parking lot. Suzi Morris, a senior vice president for Lowe Enterprises in Seattle says the project will be complete by early 2019.
The 286-unit residential building will offer studios, one- and two-bedroom market rate apartments, ranging from approximately 500 to 1,100 square feet. There will also be around 9,000 square feet of retail on the ground floor. Amenities will include a courtyard, rooftop deck, outdoor spaces, two-story fitness center, covered cabana and a media room. Morris says the project will introduce the first availability for housing at this location.
We think its a great spot because it’s highly walkable to amenities, the transit and freeways
“Redmond Town Center is in the heart of downtown Redmond,” said Morris. “There are actually a lot of apartments outside of the center, but this development is right in the middle. We think its a great spot because it’s highly walkable to amenities, the transit and freeways. It’s a great town to be a part of.”
According to Colliers International’s 2016 Seattle Apartment Market Study, trends in 2015 for East King were dominated by both development activity and investment sales momentum in Redmond. More than half of the apartment deliveries in 2015 took place in Redmond, six out of seven sales. Redmond also added thousands of units to its development pipeline. The report states that overall the submarkets within East King County experienced an average rental rate growth of over 8 percent for the second year in a row, while maintaining a 3.8 percent vacancy rate and 4.8 percent cap rate. The average rental rate in 2015 was $1,607, or $1.62 per square foot, says the same report.
While the market received delivery of 1,771 new apartment units in 2015, development plans for future years moderated, except for Redmond, says the Colliers report. Outside of the Redmond marketplace, only one transaction occurred, showing a relatively quiet investment sales market. The same report predicts that 2016 should prove a strong year for apartment dynamics in East King.
Lowe Enterprises owns 820 residential units in the Puget Sound region, and according to Morris the developer is currently looking at additional urban investment opportunities in the area. One of its recent projects is Luma Condominium, a 24-story tower opening mid August that is 68 percent sold.