Seattle, WA – January 9, 2023 – Nitze-Stagen announced today the groundbreaking of 900 Rainier, an 8-story, 398 mixed-income apartment community in the Northern Rainier Valley, designed to meet a critical housing need for Seattle’s workforce.
The project is part of Nitze-Stagen’s multi-family portfolio that is focused on developing high-quality, transit-oriented, mixed-income rental housing. The building will include 41 Mandatory Housing Affordability (MHA) and 81 Multi-Family Tax Exemption (MFTE) apartment units. Apartment rents will start as low as 40% of area medium income (AMI) with a mix of studio, one- bedroom and two-bedroom units.
“Not many private developers are performing on MHA but we think it’s important to build mixed-income communities that provide a full range of attainably priced housing options,” said Riley Coleman, Director of Acquisitions for Nitze-Stagen.
The groundbreaking coincides with the closing of a $112M construction loan from an affiliate of Mack Real Estate Credit Strategies, L.P. (MRECS). Nitze-Stagen, which announced the loan today, worked with Jake Leibsohn and Ron Peterson of Northmarq’s Seattle-based regional office to arrange the financing.
“The construction loan from MRECS coupled with investments by our local Opportunity Zone investors is a testament that private development, with a range of tools, can help meet our city’s housing affordability gap,” added Coleman.
Part of that partnership includes Pinnacle Partners, assisting Nitze-Stagen to raise equity from investors who share the firm’s vision for building mixed-income apartment communities.
“Supporting the growing need for workforce attainable housing is a core mission for Pinnacle Partners and many of our investors,” said Leo Backer, Managing Partner at Pinnacle Partners.
“We are proud to be a part of 900 Rainier and showcase the positive impact Opportunity Zone investing has for the future of our communities,” added Jeff Feinstein, Managing Partner at Pinnacle Partners.
A transit-oriented development, 900 Rainier is only a five-minute walk to and from the Judkins Park Light Rail Station which is scheduled to open in late 2024. The station will connect with the I-90 Trail encouraging walking and cycling to the station. To complement this public investment, 900 Rainier will offer over 241 bike stalls for residents.
2,000 square feet of retail is planned along Rainier Avenue with courtyards to provide a buffer along the busy transit corridor. Artist Fulgencio Lazo has been selected to develop several art installations reflecting the history of the area for the central plaza and landscaped corridors along Rainier Avenue.
Lazo is an internationally recognized artist whose vibrant abstract paintings and sculptures are an exploration of cultural identity and the power of community. His work has been exhibited in more than 50 solo exhibitions throughout the United States, Mexico, France, and Japan.
For retail, Nitze-Stagen is seeking input from the community to identify, attract and support authentic, value-add small businesses in the neighborhood. 900 Rainier is anticipated to be completed in January of 2025. The project team includes Jackson Main Architecture; Venture General Contracting; Raftery Suver; Karen Kiest Landscape Architects; DB Engineering; Bush, Roed & Hitchings; CT Engineering; PanGeo; BEE Consulting; McKinney Engineering; Emerald City Engineers; and Counterbalance Studio.
Nitze-Stagen is a Seattle based integrated real estate investment firm with over 40-years of historic preservation, adaptive reuse, and new developments that serve as catalysts for community placemaking. The firm launched their multi-family portfolio in 2018 to meet a growing demand for high-quality, transit-oriented, attainably priced rental housing. All privately funded, in 2023, that portfolio includes more than 2,000 apartment units in development with future rents ranging from as low as 40% AMI to 120% AMI, in their mixed-income communities. Integrated real estate investment firm – Nitze-Stagen
About Pinnacle Partners – Tax Advantaged, Community Impact Real Estate
Pinnacle Partners is an early mover and leader in Opportunity Zone (OZ) real estate investing. The firm and its affiliates have invested more than $200 Million of equity across 12 projects that consist of approximately 2,000 multifamily units, and two historic adaptive re-use office buildings. Pinnacle seeks best-in-class development partners in target markets across the U.S. with track records of delivering and operating successful projects.
About Mack Real Estate Credit Strategies
Mack Real Estate Credit Strategies, L.P., the Mack real estate credit business, was established to be a one-stop shop for borrowers with transitional assets, in particular to provide capital for deals that traditional banks are less likely to finance due to increased regulation, complexity and/or execution risk. MRECS focuses on properties in need of flexible capital and sponsors seeking an experienced, sophisticated real estate lending partner that is able to evaluate, design structured solutions for and manage such risks.
As a capital markets leader, Northmarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $16 billion, loan servicing portfolio of more than $65 billion and the multi-year tenure of our more than 600 people.