Home AEC Orenda is the PNW First Public-Private Equity Investment for Workforce Housing

Orenda is the PNW First Public-Private Equity Investment for Workforce Housing

Laird Norton Properties, Spectrum Development Solutions, Seattle Children’s Hospital, Seattle, Odessa Brown Children’s Clinic, Tiny Tots Development Center, Weber Thompson, Absher, NBBJ
Orenda Rendering Credit Weber Thompson

Seattle (June 12, 2019) – Laird Norton Properties (LNP), Spectrum Development Solutions(Spectrum), and Seattle Children’s  announced today an expanded partnership at Orenda to address the workforce housing gap in South Seattle. Located at MLK and Othello, across from the Othello Light Rail Station, the transit-oriented project will be seven-stories and approximately 230,000 sq. ft. with 176 apartments for individuals and families earning between 65% – 120% of AMI.  The first two floors will include a second Odessa Brown Children’s Clinic as well as Tiny Tots Development Center.  

With the addition of Seattle Children’s impact equity investment of up to $8 million, the number of workforce housing units set aside at 80% of AMI will double from 20% to 40% (72 out of 176 units) for a period of twenty years. This will be across all unit sizes from studios, one-bedroom, two-bedroom and three-bedroom family apartment homes. Workforce housing for individuals and households at the 80% AMI level is defined as no more than $56,000 – $80,250 in combined household income.  

“We’re dedicated to being a good neighbor,” said Dr. Jeff Sperring, chief executive officer of Seattle Children’s. “With this investment in much-needed housing near our clinic, we’re better able to support kids’ health and wellness, while also giving back to the community.”

The model of pairing impact equity with long-term, strategic debt and equity financing allows for a greater breadth of affordability and is something that can be replicated in any city and partnership. Although this partnership (heath care and private development focused on workforce housing)  is a first in the Pacific Northwest, the structure can be successfully replicated for any partnership with the right alignment of shared goals and long-term vision.  

“LNP and Spectrum launched our joint venture to push the envelope on the delivery of workforce housing through unique and innovative partnerships,” said Jim Reinhardsen, President of LNP. “With Seattle Children’s Hospital investing with us, it takes the next step in modeling how creative partnerships can effectively deliver much needed workforce housing.” 

“Building workforce housing has become more and more difficult in recent years, which is why this model is both disruptive and catalytic,” added Jake McKinstry, Principal at Spectrum Development Solutions. “At a time when many cities across our nation are facing housing affordability issues, this project is demonstrating how private and non-profit sectors can work together in creating new models for the delivery of workforce housing. We hope that this project inspires others, even family landowners, to see the possibility in meeting this critical housing need.”  

The residential building is targeting USGBC LEED Gold Certification and will include a shared fitness center and bike room, rooftop club room and deck, dog run, and shared amenity spaces. There will be approximately 100 underground parking stalls associated with the project.  The design will include community-driven art features with an emphasis on the diverse culture of South Seattle.   

Spectrum Development Solutions is the developer for the project and will also oversee the Odessa Brown Children’s Clinic and Tiny Tots Development Center buildouts. Weber Thompson is the architect for the building’s shell and core and residential units. Absher is the general contractor for the residential as well as shell & core and buildouts for Odessa Brown Children’s Clinic and Tiny Tots Development Center. NBBJ is the architect for Odessa Brown Children’s Clinic. The project is anticipated to break ground in the late fall of 2019 with estimated completion in summer of 2021.  

The name Orenda was chosen as the project name as it represents the mystical force present in all people that can empower them to affect the world or change in their own lives.

About Seattle Children’s Hospital 

Seattle Children’s mission is to provide hope, care and cures to help every child live the healthiest and most fulfilling life possible. Together, Seattle Children’s Hospital, Research Institute and Foundation deliver superior patient care, identify new discoveries and treatments through pediatric research, and raise funds to create better futures for patients. Ranked as one of the top children’s hospitals in the country by U.S. News & World Report, Seattle Children’s serves as the pediatric and adolescent academic medical center for Washington, Alaska, Montana and Idaho – the largest region of any children’s hospital in the country. As one of the nation’s top five pediatric research centers, Seattle Children’s Research Institute is internationally recognized for its work in neurosciences, immunology, cancer, infectious disease, injury prevention and much more. Seattle Children’s Hospital and Research Foundation works with the Seattle Children’s Guild Association, the largest all-volunteer fundraising network for any hospital in the country, to gather community support and raise funds for uncompensated care and research. Join Seattle Children’s bold initiative – It Starts With Yes: The Campaign for Seattle Children’s – to transform children’s health for generations to come. For more information, visit seattlechildrens.org or on our On the Pulse blog.  

About Laird Norton Properties 

Laird Norton Properties (LNP) is a Seattle-based real estate investment firm that owns and operates a national portfolio.  LNP’s recent merger with Heartland LLC, created a unique, multi-faceted and fully integrated business and real estate enterprise providing flexible capital investment structures as well as a fully integrated real estate services platform with the expertise to complete even the most demanding transactions. LNP is a wholly owned subsidiary of the Laird Norton Company (LNC), a 160-year-old, seventh-generation family enterprise with significant investments in consumer and financial companies. In 2017, Laird Norton Properties and Spectrum Development Solutions launched the first U.S. joint venture aimed at building workforce and student housing.  Today the joint venture has over 400 units of workforce housing units and over 500 beds of student housing in the pipeline.   https://lairdnortonproperties.com

About Spectrum Development Solutions

Spectrum Development Solutions is a mission-driven real estate development and advisory company with a diverse, cross-sector focus spanning workforce housing, student housing, healthcare, and civic oriented projects.  All of Spectrum’s projects have a strong community focus with an emphasis on transit-oriented and environmentally sustainable development. Spectrum was one of the first private developers in the nation to build a trifecta of transit-oriented workforce housing projects, located in Seattle’s First Hill Neighborhood.  In 2017, Spectrum and Laird Norton Properties launched the first U.S. joint venture aimed at building workforce and student housing.  Today the joint venture has over 400 units of workforce housing units and over 500 beds of student housing in the pipeline.  www.spectrumdevsolutions.com