$24.3M financing secured for six affordable housing assets in Seattle
JLL Capital Markets arranged the acquisition financing for the 354-unit, SEDU portfolio through Fannie Mae, as well as the Amazon Housing Equity Fund
LOS ANGELES, Jan. 19, 2023 – JLL Capital Markets announced today that it has secured $24.3 million in acquisition financing for a six-asset affordable housing portfolio, consisting of 354 small efficiency dwelling units (SEDUs) located in infill Seattle, Washington.
JLL worked on behalf of the borrower, SRM Development, to secure the five-year, fixed-rate senior Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital, LLC, a Fannie Mae DUS lender. Additionally, with the imposed affordability restrictions on 100% of the units, JLL was able to arrange attractive mezzanine financing from the Amazon Housing Equity Fund. The units of the portfolio are permanently preserved for renters at 50% to 80% AMI.
The properties include:
· The 68-unit, 2020-built Alloy Apartments at 802 5th Ave.
· The 55-unit, 2018-built Brooklyn 65 Apartments at 1222 NE 65th St.
· The 72-unit, 2018-built Luna Apartments at 6921 Roosevelt Way
· The 75-unit, 2019-built Track 66 Apartments at 836 NE 66th St.
· The 58-unit, 2017-built Vega Apartments 4528 44th Ave. SW.
· The 27-unit, 2018-built Yale Apartments at 2037 Yale Ave.
“To preserve this number of units at these rents is a once-in-a-blue-moon opportunity,” said SRM Managing Principal of Affordable Housing Conor Hansen. “Bringing brand new units to market can take up to five years, and with rents rapidly rising we knew there was urgent need to preserve affordability now by purchasing these new, high-quality buildings. We would not be here without the vision, strong partnership and commitment from the Urban League, Amazon and the City of Seattle’s Office of Housing. These are the partnerships we need to battle our affordable housing crisis.”
“Preservation of existing affordability is one of the most effective ways to address housing affordability challenges in the Puget Sound and is a key element of our work,” said Catherine Buell, Director of the Amazon Housing Equity Fund. “Public/private partnerships are also essential to creating more affordable housing and we’re thrilled to partner with SRM, the City of Seattle, and the Urban League protect the affordability of these homes.”
The JLL Capital Markets Debt Advisory team was led by Senior Director Anson Snyder and Senior Managing Director C.W. Early, along with Director Kaden Eichmeier.
“Fannie Mae is an excellent partner in understanding the transaction’s requirements and timing. JLL is fortunate to work with a committed team to deliver affordable housing in the Seattle market,” said Snyder.
The Amazon Housing Equity Fund is a more than $2 billion commitment to preserve and create more than 20,000 affordable housing units in Washington state’s Puget Sound region; in and around Arlington, Virginia; and Nashville, Tennessee—three hometown communities where the company has a large and growing presence. The Amazon Housing Equity Fund increases housing options for moderate-to-low-income families by providing affordable housing providers with quick access to low-rate loans to create or preserve buildings where affordability would have otherwise been lost to commercial-rate development. The fund will also provide cash grants to businesses, nonprofits and minority-led organizations to help them build a more inclusive solution to the affordable housing crisis, which disproportionately affects communities of color.
Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About SRM Development
SRM Development is a privately owned real estate company, specializing in multifamily, senior housing, affordable, and mixed-use development and construction in high barrier, urban markets across the western United States. SRM directly manages all phases of the development process, including land acquisition and design, permit and entitlement, and project construction. Since 1999, SRM has developed or constructed, or has under development, projects totaling approximately 12,000,000 square feet, including over 8,300 residential units and approximately 1,600,000 square feet of commercial space. The principals of SRM have worked together for nearly two decades and have almost 100 aggregate years of experience in real estate investment, development, and construction. SRM’s corporate office is in Spokane, Washington with an additional office located in Kirkland, Washington.