Development of Two Apartment Projects Totaling 272-Units
Kent and Tacoma, Washington
Parkview Financial has provided a cross-collateralized, $54.5 million construction loan to a joint venture of GIS International Group and DMG Capital for the development of two apartment properties totaling 272 units. The properties include a seven-story, 157-unit apartment project located at 102 Madison Avenue in downtown Kent, WA, and a six-story building with five stories of residential units over ground floor retail located at 415 E 25th Street in downtown Tacoma, WA.
“This construction loan is testimony to Parkview’s bullishness on the greater Seattle metro and the need for more multifamily development in the Pacific Northwest,” said Paul Rahimian CEO and Founder of Parkview Financial. “This region is seeing an influx of business and population growth and these two projects are poised to attract renters seeking quality housing and best-in-class amenities.”
He added, “The assets were cross-collateralized to accommodate the borrower’s utilization of ground lease financing. Parkview was able to provide the borrower with a highly customized financing execution that consisted of ground-up construction, mid-construction, and working with a ground-lease partner, all of which required a high degree of creativity, flexibility, and discretion.”
Following are details on each property:
Tacoma, WA: The project will consist of a five-story apartment complex built over one-story of retail space with plans for a farmer’s market, as well as subterranean parking with 53 spaces. The apartment portion will contain 115 units with several different floor plans and a unit mix of studio, one- and two-bedroom units. All the units will include private balconies. On-site amenities will include a fitness center, game room, and a rooftop terrace.
The site is located on a transit-oriented development site directly adjacent to the Tacoma Dome Station, Tacoma's main transit hub, which provides access to Tacoma central business district via light rail and access to downtown Seattle via the Sounder train or bus. The project is also within walking distance to University of Washington, Tacoma and the Tacoma Dome.
Kent, WA: The project will include five stories of apartment units over two stories of parking, on-site amenities and commercial space. The units will offer nine different floor plans with a unit mix of 12 studios, 107 one-bedroom units, and 38 two-bedroom units. Some of the amenities include a fitness center, lobby lounge, game lounge, coffee kiosk, an 11,900-square-foot (sf) rooftop deck and 2,720 sf of patio space. The property is well under construction and completion is anticipated for summer 2022.
Parkview was able to seamlessly step into financing mid-construction which reduced the cost of capital for the borrower.
GIS International is the general contractor for both projects.