Seattle, WA. – September 16, 2016 – Spectrum Development Solutions announced today that Anthem on 12th has been sold for $35.034 million to CWS Capital Partners. Spectrum principals will continue to have an ownership stake with the new owner as part of their core mission to develop and retain workforce housing in Seattle.
Anthem on 12th was the first private development as part of the Yesler Terrace Redevelopment and has proven to be a successful model for integrating workforce housing with market-rate apartments. Before opening in May of 2015, Anthem was 40% pre-leased and fully leased by the end of the year.
Located at 103 12th Avenue in the First Hill neighborhood of Seattle, Anthem is a LEED Gold, six-story transit-oriented project that consists of 120 contemporary apartment homes with studio, one, and two bedroom units. All 120 apartments are workforce housing with 30-percent of the 120 units reserved for households earning 65%-80% of area median income (AMI). No public subsidies were used to build Anthem, aside from accessing the city of Seattle’s Multi-Family Tax Exemption program.
Anthem is a national finalist for the Urban Land Institute (ULI) Jack Kemp Excellence in Affordable and Workforce Housing Award which will be announced in October 2016.
“The sale does not change the affordability mix of the building which is guaranteed for 20-years,” said Jake McKinstry, principal of Spectrum Development Solutions. “Rather, it once again demonstrates that developing workforce housing is not only profitable for our community but can have a profitable return on investment for our partners.”
“Our financial partner Gracorp Capital Advisors believed in the vision from the beginning and we couldn’t have built Anthem without them,” added McKinstry. “They were the private capital that helped us construct a successful model that has been nationally recognized.”
Anthem was the first building to open as part of Spectrum’s uniquely designed trifecta of transit oriented development (TOD) apartment buildings (Anthem, Decibel and Reverb) on First Hill that are bringing a total of 280 new workforce housing apartments to the neighborhood for teachers, medical professionals and others with 25-percent of the apartments dedicated for households earning between 65% – 85% of AMI. A portion of the apartments will be affordable for households earning 80% AMI for 50 years.
Aside from the three projects on First Hill (Anthem, Decibel, & Reverb), Spectrum recently completed The Publix with Uwajimaya which also includes 25 workforce apartment units.
“Our commitment to partnering with equity investors who share our vision keeps growing,” added McKinstry.
“The way we see it, the sale of Anthem is just one more proof point that developing for the ‘missing middle’ is a smart investment all around. It’s going to take all of us, public and private, to bridge the housing gap so we need to keep creating replicable development models, like Anthem, for producing workforce housing.”
About Spectrum Development Solutions
Founded in 2008, Spectrum Development Solutions is a real estate advisory and development company with a primary focus on transit oriented, environmentally sustainable projects that enhance the community fabric. Spectrum takes great pride in its experience as a strong community partner in development and redevelopment initiatives that serve a mix of uses and populations. Spectrum’s development work ranges from mixed-use multifamily projects to student housing and health care clinics.
Spectrum’s work has been recognized nationally for innovative approaches to workforce housing. This year Spectrum’s Anthem on 12th project, which is the first private development in Yesler Terrace, was selected as a finalist for the Urban Land Institute (ULI) Jack Kemp Excellence in Affordable and Workforce Housing Award. Additionally, Spectrum was the recipient of the 2016 LOCUS Richard Baron Affordable Housing Award. More information on Spectrum’s work can be found here: www.spectrumdevsolutions.com