In a joint effort, MainStreet Property Group and HAL Real Estate Investments have successfully secured $66.2 million in construction financing for their multifamily development, Eastrail Flats, located in Woodinville, Washington. According to Commercial Real Estate Direct and reporting in Multi-Housing News, Principal Life Insurance is the lender responsible for funding this venture.
Institutional Property Advisors, a division of Marcus & Millichap, facilitated the five-year loan, offering a unique deal with 31 months of interest-only payments and a 30-year amortization. The Eastrail Flats project is set to introduce 207 residential units to the neighborhood, comprising the first phase of this development. Following this, the project’s second stage will involve the construction of 63 townhomes.
In late 2022, the partners purchased the 4.3-acre development site, according to The Registry reporting, formerly known as the Woodgate Shopping Center, for $23 million, readying the groundwork for this venture. The general contractor assigned to the project is GenCap Construction Corp., while Dahlin Group Architects is helping design the project. Insite Property Solutions will serve as the property manager, with groundbreaking expected to commence later this year.
Eastrail Flats will encompass a five-story building featuring 24,000 square feet of ground-floor retail space, with 50 percent of the space leased to Birch Tree Academy. The property will also boast a range of common-area amenities, including a rooftop wildlife habitat, fitness center, lounge area, and pet washing station. With a goal to achieve LEED Platinum certification, the project will include 21 affordable residences.
Located at 13400 NE 175th St., Eastrail Flats will look to offer a communal feel to an urban location. The property is situated close to Interstate 405, only 20 miles from Seattle, and surrounded by numerous retail, dining, and entertainment options in the heart of Woodinville’s downtown.
Senior Vice President Raymond Allen and Vice President Seth Heikkila led the IPA team that facilitated the loan on behalf of the borrower. This deal was part of a trio of recent financings arranged by the company in suburban Seattle, totaling $173 million, which included a $66.7 million note for The Spark, another project developed by MainStreet, which will deliver 211 units in neighboring Redmond.