University-Proximate Housing Nabs Funding
Knighthead provided an affiliate of Barcelo Homes with a $25.25 million loan secured by a 178-unit micro studio apartment project located within walking distance to the new Roosevelt light rail.
SEATTLE—Proximity to the University of Washington proved key to securing financing for two multifamily properties. Knighthead Funding LLC has originated two separate loans totaling $29.85 million in first mortgage debt secured by a micro-unit rental property in the Roosevelt neighborhood and a student housing property located near the university. The two deals were the second and third projects that Knighthead has funded in Seattle during the past nine months.
“Each property’s proximity to the University of Washington, the light rail and all necessary amenities make both attractive housing options for tenants,” said Henry Boeckmann, Knighthead Funding vice president.
In the larger of the two financings, Knighthead provided an affiliate of Barcelo Homes with a $25.25 million loan secured by a 178-unit micro studio apartment project located within walking distance to the new Roosevelt light rail. The financing takes out the existing construction loan and provides the runway needed to lease the property. Amenities include a lounge, courtyard, fitness center, rooftop deck, bike storage, common laundry area and controlled access entry.
Knighthead also provided Vekst Development with a $4.6 million loan secured by a new 28-unit studio apartment development located four blocks from the University of Washington. Knighthead’s financing will allow the sponsor to complete a rooftop deck and punch list items on the newly constructed four-story building.
“Seattle is an attractive market to finance deals given the continued expansion in the local economy, strong job growth and above-average median household income. It is one of the fastest growing cities in the country,” Boeckmann tells GlobeSt.com. “Accordingly, investment capital is readily available for the acquisition of investment properties in this market, which makes it especially attractive to lenders like Knighthead.”
Since the company’s inception in 2013, Knighthead Funding has originated more than $1 billion of short-term debt, having delivered 103 loans on various asset types across 19 states.
“These recent Seattle closings further demonstrates our team’s collective experience to structure loans that meet our borrowers’ specific requirements and rigid timeframes on a nationwide basis,” said Jonathan Daniel, a principal at Knighthead Funding.
As Seattle’s workforce surges 26%, commuting gets complicated, according to a report by CommercialCafe. Seattle’s workforce and population expansion have resulted in an increase in commuting time. Locals spent about 49.4 minutes per day commuting in 2008. By 2017, the daily average had increased to 56.6 minutes. Additionally, in just 10 years, the number of workers in Seattle has increased by 26%, while the city’s population grew 24%, says the study.
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