A joint venture between The Behar Company and HB Management has secured a 131.9 million dollar financing package for the construction of a residential complex in a suburb north of Seattle. The funds are earmarked for the 411-unit Edmonds Green development project in Edmonds in the US state of Washington.
The total financing consists of two components. Madison Realty Capital is providing a senior construction loan of 97.5 million dollars, whilst Red Cove Capital is contributing 34.4 million dollars in mezzanine capital.
Location qualities and long-term commitment
The project is being developed on a 20,274-square-foot site at 7212 220th Street SW, around 15 miles north of downtown Seattle. The site has been owned by The Behar Company since 2005 and directly adjoins Edmonds Village, a three-building local retail centre owned by the developer.
Samir Tejpaul, head of investments at Madison Realty Capital, stated that the developer's two-decade ownership of the site, together with the experienced construction team and Red Cove as institutional partner, provides great confidence in Edmonds Green. He added that the property is situated in a high-income, supply-constrained submarket and offers direct access to key employment centres extending from Seattle and Bellevue to aerospace and advanced manufacturing hubs in the north.
Housing mix and subsidised units
Upon completion, Edmonds Green will comprise two residential buildings. The unit mix ranges from studio flats to three-bedroom apartments. Twenty per cent of the stock will be designated as income-restricted housing via the City of Edmonds' Multifamily Housing Property Tax Exemption Program.
The Behar Company and HB Management did not initially provide further comment on the details of the project upon request.
