Canyon Partners & American Capital Plan Second Seattle OZ Build

Canyon Partners and American Capital Group are embarking on another opportunity zone development project in the Seattle area together. Kinect @ Burien is the joint venture’s second opportunity zone project in the Seattle area. The 230-unit apartment building is located in Burien, an opportunity zone district.

The project will cost upwards of $75 million to build. Canyon has invested $25.6 million in equity, and the joint venture has secured a $51.5 million senior construction loan. Canyon alone has worked on more than nine opportunity zone developments, representing a total of $700 million of real estate development projects. Those projects include Kinect @ Lynnwood, the previous apartment property developed by its joint venture with American Capital Group in Seattle.

Kinect @ Burien will feature a mix of studio, one- and two-bedroom units, along with a fitness center and outdoor community areas for residents. In addition to its status as an opportunity zone build, the property is participating in the City of Burien’s Multifamily Tax Exemption program, dedicating 20% of the project’s units as affordable housing.

Many of Seattle’s opportunity zone projects are tackling housing affordability issues. Opportunity zone investment firm Pinnacle Partners and developer Nitze-Stagen broke ground on Canton Lofts, Seattle’s first Opportunity Zone development in late 2019. The $30 million apartment building is located in the historic Pioneer Square and will feature 80 units with transit accessibility and provide affordable one-bedroom studios.

There is a lot of upside in the market. Overall, Seattle is booming. The city has become a top destination for foreign capital. According to a report from Real Capital Analytics, the city overtook New York earlier this year for cross-border investment. In the year prior, it held the number two spot, second the New York.

Kinect @ Burien is expected to open in 2023.