Link Studios Apartments features 60 studios within an eco-friendly single wood-framed structure.
SEATTLE—Local job growth is nearly twice that of the US growth rate as a whole and–as a result – Seattle and broader King County continue be one of the most expensive US housing markets. Although holding a position as one of the hottest housing markets in the country has its benefits, it also translates to an extremely unforgiving rental market for middle- and low-income individuals and families, says Conor Hansen, director of real estate at Mt. Baker Housing.
However, the recent purchase of a three-story multifamily residential building, Link Studios Apartments, represents Mt. Baker Housing's first new construction and a rare open-market acquisition by a nonprofit developer for affordable housing. The affordably priced building will rent to tenants between 40% to 60% of area median income/AMI.
“Creating more affordable housing continues to be one of our top political issues in Seattle,” Hansen tells GlobeSt.com. “We're aggressively seeking opportunities to house people at prices they can afford and if possible, near transit. This means revitalizing and preserving existing structures, as well as finding creative ways to finance and build new properties. As such, we've focused innovative deals such as our rare acquisition of the Link Studios Building, which will feature affordably priced units at 40 to 60% AMI. Deals at this AMI help ensure that Seattle's neighborhoods near transit can remain affordable. The deal also represents an innovative public private partnership–with funding from the city of Seattle's Office of Housing.”
As part of the financing for the purchase, private affordable housing project funder Washington Community Reinvestment Association provided the first position loan at just under $5 million and the Seattle Office of Housing provided approximately $3 million.
The Rental Housing Program funds the development of affordable rental housing in Seattle using local funds such as the Seattle housing levy, federal funds and other fund sources. In 2016, $47 million was awarded to support 610 low-income working individuals, families and people who are experiencing homelessness, GlobeSt.com learns.
“I'm thrilled the Office of Housing could act nimbly with our partners at Mt Baker Housing to realize the rare chance to invest in a newly constructed building.” said Steve Walker, director of the Seattle Office of Housing. “These homes in a building close to transit in a vibrant neighborhood will remain affordable for the next 20 years for low-income community members in our city.”
The property is located on the corner of South Mount Baker Boulevard and 30th Avenue South at 2939 South Mount Baker Blvd. The 12,000-plus-square-foot apartment building with basement level features 60 studios within an eco-friendly single wood-framed Four-Star-Built green structure.
“While this building was not originally on our radar, as purchasing a new construction, fully leased building never is, after a cursory look into the property, we discovered a path to purchase it and ensure it would remain affordable,” said Hansen. “With early financial modeling, we quickly realized that with some financial support, it could work. The opportunity to acquire 60 brand-new transit-oriented development units at such a low cost was something we knew we had to capitalize on. Funding from the Office of Housing was instrumental in this deal coming together. Without their support, it never would have worked. When the deal was presented, the city moved quickly to help us jump at this opportunity. Like us, they recognized the rare opportunity to purchase 60 turnkey units that were instantly affordable.”
Built in 2017, the Link Studios Apartments is located in the popular walkable and bikeable Mt. Baker neighborhood, with access to transit locations nearby, including King County Metro lines and the popular Mt. Baker station link light rail, just 200 yards from the property.
Featuring 48 above-ground units and 12 basement-level homes, units at the Link Studios Apartments include stainless refrigerators and freezers, built-in convection microwaves, subway tile backsplashes in kitchen areas, modern cabinetry and hardware, and oversized windows with natural light.
The seller was Build Urban, represented by JLL brokers Don Flanigan, Matt Kemper, David Young and Corey Marx.
Mt. Baker Housing renovates existing properties and pursues new construction projects. Since its first project, rehabilitation of the nine-building 156-unit Mt. Baker Village Apartments complex, Mt. Baker Housing has since developed (and now owns and operates) numerous low-income and affordable housing properties. The Link Studios is Mt. Baker Housing's ninth affordable apartment project in Seattle. Additional projects include 90-units in scattered sites (Rainier Valley), 35-unit Arbor Woods (Skyway), 30-unit Starliter Apartments (Rainier Beach), 26-unit Crestwood Place (Rainier Valley), 166-unit Maddux project (Mt. Baker), 165-unit Beach Square (Rainier Beach) and the 150-unit Grand Street Commons project (Judkins Park).
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
