The pace of transit-oriented development in the Puget Sound region is picking up with two large developments, one in SeaTac and the other in Lynnwood, set to start construction and ultimately deliver nearly 825 units of housing.
Both are being developed under the federal opportunity zone program.
The $175 million SeaTac project is across the street from Tukwila International Boulevard Station. CAP Acquisitions LLC, an affiliate of Spokane-headquartered Inland Group, will start to demolish buildings next week at the site, 12545 International Blvd. S.
A two-building, affordable housing project called Polaris at SeaTac will have 365 homes and the third building, Adara, will have 220 market-rate homes. There will be a total of 27,000 square feet of commercial space in the buildings along with 420 underground parking stalls at Polaris.
Adara construction is planned to start about six months following Polaris' construction start, depending on market conditions, said Inland Development Lead Keith James.
Eighteen stations to the north in Snohomish County is where the second project, Kinect @ Lynnwood, will rise near the City Center station, which is expected to open in 2024.
Bellevue-based American Capital Group (ACG) and Canyon Partners Real Estate LLC of Los Angeles are joint-venture partners on the 239-unit development. ACG Chief Operating Officer and Chief Investment Officer BJ Kuula said construction of the $75 million project will start in June.
The Lynnwood and SeaTac projects are the region's latest transit-oriented developments. Expect to see many more in the coming decades as Sound Transit builds out the rail system, which ultimately is planned to cover 116 miles with 82 stations.
SeaTac has been planning for projects like this for over a decade. In 2006, the city approved a plan to encourage dense development around the station, but the recession halted that.
The pace of transit-oriented development in the Puget Sound region is picking up with two large developments, one in SeaTac and the other in Lynnwood, set to start construction and ultimately deliver nearly 825 units of housing.
Inland Group started pursuing the project nearly two years ago.
"There were many challenges related to site redevelopment, especially compared to vacant land development," James said, adding that city staff was "incredibly helpful" throughout the entitlement process.
Until last year a commercial building on the property housed around 50 mostly immigrant-owned businesses.
"An amicable agreement was reached that included assistance to each of them for relocation and re-establishment of their businesses," James said.
On May 12, the SeaTac City Council voted 6-1 to sell the 4.5-acre site as two separate parcels for a total of $11 million. Councilmember Takele Gobena voted no.
The pace of transit-oriented development in the Puget Sound region is picking up with two large developments, one in SeaTac and the other in Lynnwood, set to start construction and ultimately deliver nearly 825 units of housing.
CAP Acquisitions will pay $6.93 million for the Polaris portions, with the remainder of the $11 million paid before construction of the Adara building begins. Until then, the developer will pay SeaTac $1,000 a month plus a 12.84% leasehold excise tax as payment to lease the ground.
CAP said it was forced to split the property after the Covid-19 pandemic hit and the financial lending markets for big multifamily properties all but dried up. The project's existing financing comes from the state Housing Financing Commission, Wells Fargo and Citi Community Capital.
Inland is the general contractor on the project, which Olson Projects of Spokane designed.
In Lynnwood, the JV partners paid nearly $5.13 million for the 1.7-acre property, Kuula said. His company, which has about $1 billion in assets under management, designs and builds its projects.